Oil Crash: Nigerian Investors Lose N329.4bn At NSE
The crash in global oil price has caused investors in the Nigerian Stock Exchange to lose N329.4 billion in the Monday trading session.
The spread of the coronavirus (COVID-19) has induced a four-year oil price drop to $30.02 per barrel.
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The negative impact of the pandemic on global price dragged the All-Share Index down by 241 bps to 25,647.54 points.
Sell off pressures in Guaranty Trust Bank (-10%), Zenith Bank (-9.8%) and Stanbic Bank (-10%), plunged market capitalisation from N13.695 recorded Friday to N13.4 trillion, which lead to the loss incurred by investors.
On the global scale, US stock plunged more than 5% as a result of the oil war kick-started by Saudi Arabia on Saturday.
The Stoxx Europe 600 Index dipped the most in the last four years, while Japanese stock plunged by 6%.
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The S&P 500 index fell 18% from its February 19, 2020 all-time record, which might halt the 11-year bull market.
Afrinvest Research believes that investors would remain risk averse towards equity market within the period of the outbreak of the pandemic.
