NSE: Global Market Uncertainties Dampen Stock Performance

Investors on the Nigerian Stock Exchange have resorted to less risky assets due to tension in the global markets, consequently dragging the All-Share Index to 27,033.10 points.

The investors adopted a risk-off approach as a result of the impact of the COVID-19 on world economy. Consequently, the International Monetary Fund reviewed its forecast of global growth 3.3% to 3.2%.

The IMF also reviewed Nigeria’s economic growth down to 2%, stating that the country’s external reserves vulnerability is increasing, adding that the impact of COVID-19 would disrupt economic activities.

Consequently, the investors have in the last two trading days opted for equities they perceive as safe haven.

Trading on the Nigerian stock exchange on Tuesday witnessed sell off pressures in the stocks of the Nigerian Breweries Plc. by -2.1%, Guaranty Trust Bank Plc by -0.3% and Zenith Bank Plc by -3%.

Market capitalization also fell by N4.1billion to N14.083 trillion.

The top share price decliners were SFS Real Estate Investment Trust which lost -7.65 in, Nigerian Breweries Plc lost N-1, while UPDC Real Estate Investment Trust’s share price declined by -0.03.

Meanwhile major stock markets reacted to the covid-19 as the Dow closed 3.6% low, while South Korea’s Kospi index ended 3.9%, which is its worst since October 2018.

The UK Financial Times Stock Exchange (FTSE) 100 similarly went down by 3.3%, which is its worst since January 2016.