NSE Closes in Red on Monday as Market Rout Continues

• NSE Closes in Red on Monday as Market Rout Continues

The Nigerian Stock Exchange (NSE) closed in the red on Monday as global rout hit the local exchange.

The NSE All-Share Index declined by 2.41 percent to close at 25,647.54 basis points on Monday while the market capitalisation of listed equities closed at N13.365 trillion as banking stocks declined by 8.95 percent, the highest decline of the sector since June 2003.

Guaranty Trust Bank, Zenith Bank and Stanbic declined by 10 percent each while the Nigerian Breweries and Conoil erased 9.93 percent and 10 percent from their market value, respectively.

Zenith Bank emerged the most traded stock with a total share of 53.514 million valued at N907.077 million. Transcorp came second with 23.059 million shares worth N18.004 million.

The bourse was largely impacted by the global rout that eroded 30 percent from crude oil price on Monday during Asian trading session following the failure of OPEC to convince Russia to support an additional 1.5 million per day production cut.

The brent crude oil, against which Nigerian oil is priced, plunged to $31.26 a barrel before pulling back to $36.99 per barrel.

Investors are abandoning riskier assets for safe-haven assets as global risk surged to a record high amid fast-spreading coronavirus.

South African Rand declined by 8 percent on Monday to close at 15.85, down from 16.954. The story is not different in Australia as AUS200 plunged as well despite the Reserve Bank of Australia lowering interest rates two weeks ago.

The oil-dependent Nigerian economy is expected to be affected in 2020 and hurt Africa’s largest economy ability to fund its N10.59 trillion budget for the year.