Investors lose n329bn on nse amid covid 19 fear fall in oil price
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Investors Lose N329bn on NSE Amid COVID-19 Fear, Fall in Oil Price
The Nigerian Stock Exchange (NSE) has witnessed a significant decline in investor confidence, resulting in a loss of N329 billion (approximately $900 million) in the past week. This downturn is attributed to the ongoing COVID-19 pandemic and the subsequent fall in oil prices.
Market Performance
The NSE All-Share Index (ASI) fell by 3.4% to close at 24,384.34 points, while the market capitalization decreased by N329 billion to N12.9 trillion. The decline was driven by losses in major sectors, including banking, consumer goods, and industrial goods.
Sectoral Performance
The banking sector was the worst hit, with a decline of 4.1%, followed by consumer goods (3.5%), and industrial goods (3.3%). The oil and gas sector, which is heavily dependent on oil prices, also suffered a decline of 2.9%.
Investor Sentiment
The decline in investor sentiment is attributed to the ongoing COVID-19 pandemic, which has led to a global economic downturn. The fall in oil prices has also had a negative impact on the Nigerian economy, as the country relies heavily on oil exports.
Expert Analysis
Analysts have attributed the decline to the uncertainty surrounding the pandemic and the potential impact on the global economy. They have also warned that the situation may worsen if the pandemic is not brought under control soon.
Conclusion
The decline in investor confidence on the NSE is a reflection of the uncertainty and volatility in the global economy. Investors are likely to remain cautious until the pandemic is brought under control and the global economy stabilizes.