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Market Digest Nigeria

Finance

Nigerian Stock Exchange Market Capitalisation Suffers ₦1.870 trillion Loss in Q1, 2020

The Nigerian Stock Exchange (NSE) market capitalisation lost N1.870 trillion in the first quarter of this year.

Nigerian stocks during the period suffered high volatility which was deepened by the impact of Coronavirus (COVID-19) pandemic and the oil prices crash. The market capitalisation declined by N1.870 trillion to close the period under review at N11.101 trillion from N12.971 trillion at which it opened for trading activities on January 2, 2020. Also, the overall market performance measure All-Share Index (ASI), which tracks the general market movement of all listed equities on the Exchange, declined by 20.73 per cent to close at 26,867.79 points in the first three months of the year.

Also, the sector performance was bearish as all indices closed the period on decline as at March 27, 2020. NSE Consumer Goods index depreciated the most by 44.84 per cent while NSE Banking index followed with a decline of 30.64 per cent, as NSE 30 index shed 23.03 percent. Others are NSE Pension, Oil and Gas, Lotus 11, Premium Board, Insurance and Industrial Goods, which went down by 20.30 per cent, 19.44 per cent, 15.49 per cent, 12.69 per cent, 6.14 per cent and 3.21per cent in that order.

The global pandemic, coronavirus now popularly referred to as COVID-19, has virtually “afflicted” many stock markets and devastated economies across the globe, whether developed or developing. 2020 has been a whirlwind for the global oil market, following the outbreak of the virus, which has hampered oil demand from one of the largest consumers of oil, China represent 13.1 percent of world demand.

With the virus spreading across other key demand regions, Europe (14.4 percent) and United States (20.9 percent), the outlook for oil prices is weak. While relation among the Organisation of Petroleum Exporting Countries (OPEC+) was meant to provide support for falling oil prices, a failed agreement turned into a full-blown price war, with major oil producers offering significant discounts on their April Official Selling Prices.

VO

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