Connect with us

Markets

Christmas Shopping: Nigerians Opt for Low-cost Brands

Published

on

inflation
  • Christmas Shopping: Nigerians Opt for Low-cost Brands

There has been a remarkable shift in the shopping arrangements by people ahead of the Yuletide as most shoppers now go for goods that are not expensive; just as they look for suitable alternatives for the expensive ones.

An interior decorator, Ego Oranu, said she would only shop for food and her children’s items.

“I am not buying clothes for myself; I’ll make do with the clothes that I bought last year. After buying food and stuff for the kids, there will really not be much left over because prices of things have gone up,” she said.

The President, Ikeja Shop Owners’ Association, Mr. John Okonkwo, also said, “The price of virtually every product has risen by almost 100 per cent. For instance, a five litre keg of Kings’ vegetable oil that previously sold for N1,500 now sells for N3,500 and 10kg of Semovita that was sold for N1,200 is now N3, 200. We bought one carton of tomato puree for N1,500 before; now it is N3,000. Everything that previously sold for N1,000 now sells for about N3,000,” he said.

For seasoning, Okonkwo said a carton of Maggi that sold for N5,000 was being sold for N8,000 while a similar carton of Knorr cubes that went for N4,800 had gone up to N7,200.

Hamper makers who used this period to make a lot of money lamented the ‘dry’ situation of things as they complained that many people had shunned hampers this time around.

“People are not buying items because there is no money. The sales this year are too dull. It has never been this bad. Two years ago, in a day, I made up to N200,000; but now, one would be lucky to see N40,000. Imagine somebody putting up a market of more than N2m only to sell N40,000 in a day,” Okonkwo lamented.

Most shoppers have also defined their priorities for the season since food and clothing items are expensive. Those that have chosen food consider cheaper alternatives to expensive food items.

A retired civil servant, Mrs. Roseline Akinroye, said, “I am already looking for alternatives to rice. I do not have to eat foreign rice in any case because it is not as nutritious as local rice. I can eat local rice or our local delicacies like amala, ewedu and efo riro. I can entertain my visitors with pounded yam instead of rice. Nigerians have a lot of food choices.

“I love eating turkey meat but if that is too expensive, I will buy local chicken. Also, I don’t have to buy imported drinks. I can make my lemonade at home with natural fruits, which are healthier.”

Similarly, a retired Independent National Electoral Commission employee, Mrs. yetunde Odeyemi, advised Nigerians to cut their coat according to their ‘pocket’ this Christmas.

She said, “Rice is expensive. We can eat eba and beans, although beans is expensive;it is better than rice,” she said.

An architect, Mr. Francis Eche, said he would buy more of food items than clothes since both are expensive, adding that the body needed food more than clothes.

A fashion designer, Blessing Ehikweme, said because of the high cost of living, she would concentrate on food.

Mrs. Vivian Okorie also said her shopping would be minimal because of the recession. “There is no money in the country for even people working not to talk of those that don’t have work. I will concentrate on food; then for clothes, if I have to buy any, I will buy Ankara instead of foreign materials.”

Another housewife, Esther Ifere, working with a health and nutrition firm, also said she would shop more of food than clothes.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

Continue Reading
Comments

Crude Oil

Oil Prices Rebound After Three Days of Losses

Published

on

Crude oil - Investors King

After enduring a three-day decline, oil prices recovered on Thursday, offering a glimmer of hope to investors amid a volatile market landscape.

The rebound was fueled by a combination of factors ranging from geopolitical developments to supply concerns.

Brent crude oil, against which Nigeria oil is priced, surged by 79 cents, or 0.95% to $84.23 a barrel while U.S. West Texas Intermediate (WTI) crude climbed 69 cents, or 0.87% to $79.69 per barrel.

This turnaround came on the heels of a significant downturn that had pushed prices to their lowest levels since mid-March.

The recent slump in oil prices was primarily attributed to a confluence of factors, including the U.S. Federal Reserve’s decision to maintain interest rates and concerns surrounding stubborn inflation, which could potentially dampen economic growth and limit oil demand.

Also, unexpected data from the Energy Information Administration (EIA) revealing a substantial increase in U.S. crude inventories added further pressure on oil prices.

“The updated inventory statistics were probably the most salient price driver over the course of yesterday’s trading session,” said Tamas Varga, an analyst at PVM.

Crude inventories surged by 7.3 million barrels to 460.9 million barrels, significantly exceeding analysts’ expectations and casting a shadow over market sentiment.

However, the tide began to turn as ceasefire talks between Israel and Hamas gained traction, offering a glimmer of hope for stability in the volatile Middle East region.

The prospect of a ceasefire agreement, spearheaded by Egypt, injected optimism into the market, offsetting concerns surrounding geopolitical tensions.

“As the impact of the U.S. crude stock build and the Fed signaling higher-for-longer rates is close to being fully baked in, attention will turn towards the outcome of the Gaza talks,” noted Vandana Hari, founder of Vanda Insights.

The potential for a resolution in the Israel-Hamas conflict provided a ray of hope, contributing to the positive momentum in oil markets.

Despite the optimism surrounding ceasefire talks, tensions in the Middle East remain palpable, with Israeli Prime Minister Benjamin Netanyahu reiterating plans for a military offensive in the southern Gaza city of Rafah.

The precarious geopolitical climate continues to underpin volatility in oil markets, reminding investors of the inherent risks associated with the commodity.

In addition to geopolitical developments, speculation regarding U.S. government buying for strategic reserves added further support to oil prices.

With the U.S. expressing intentions to replenish the Strategic Petroleum Reserve (SPR) at prices below $79 a barrel, market participants closely monitored price movements, anticipating potential intervention to stabilize prices.

“The oil market was supported by speculation that if WTI falls below $79, the U.S. will move to build up its strategic reserves,” highlighted Hiroyuki Kikukawa, president of NS Trading, owned by Nissan Securities.

As oil markets navigate a complex web of geopolitical uncertainties and supply dynamics, the recent rebound underscores the resilience of the commodity in the face of adversity.

While challenges persist, the renewed optimism offers a ray of hope for stability and growth in the oil sector, providing investors with a semblance of confidence amidst a volatile landscape.

Continue Reading

Gold

Gold Soars as Fed Signals Patience

Published

on

gold bars - Investors King

Gold emerged as a star performer as the Federal Reserve adopted a more patient stance, sending the precious metal soaring to new heights.

Amidst a backdrop of uncertainty, gold’s ascent mirrored investors’ appetite for safe-haven assets and reflected their interpretation of the central bank’s cautious approach.

Following the Fed’s decision to maintain interest rates at their current levels, gold prices surged toward $2,330 an ounce in early Asian trade, building on a 1.5% gain from the previous session – the most significant one-day increase since mid-April.

The dovish tone struck by Fed Chair Jerome Powell during the announcement provided the impetus for gold’s rally, as he downplayed the prospects of imminent rate hikes while underscoring the need for further evidence of cooling inflation before considering adjustments to borrowing costs.

This tempered outlook from the Fed, which emphasized patience and data dependence, bolstered gold’s appeal as a hedge against inflation and economic uncertainty.

Investors interpreted the central bank’s stance as a signal of continued support for accommodative monetary policies, providing a tailwind for the precious metal.

Simultaneously, the Japanese yen surged more than 3% against the dollar, sparking speculation of intervention by Japanese authorities to support the currency.

This move further weakened the dollar, enhancing the attractiveness of gold to investors seeking refuge from currency volatility.

Gold’s ascent in recent months has been underpinned by a confluence of factors, including robust central bank purchases, strong demand from Asian markets – particularly China – and geopolitical tensions ranging from conflicts in Ukraine to instability in the Middle East.

These dynamics have propelled gold’s price upwards by approximately 13% this year, culminating in a record high last month.

At 9:07 a.m. in Singapore, spot gold was up 0.3% to $2,326.03 an ounce, with silver also experiencing gains as it rose towards $27 an ounce.

The Bloomberg Dollar Spot Index concurrently fell by 0.3%, further underscoring the inverse relationship between the dollar’s strength and gold’s allure.

However, amidst the fervor surrounding gold’s surge, palladium found itself trading below platinum after dipping below its sister metal for the first time since February.

The erosion of palladium’s long-standing premium was attributed to a pessimistic outlook for demand in gasoline-powered cars, highlighting the nuanced dynamics within the precious metals market.

As gold continues its upward trajectory, investors remain attuned to evolving macroeconomic indicators and central bank policy shifts, navigating a landscape defined by uncertainty and volatility.

In this environment, the allure of gold as a safe-haven asset is likely to endure, providing solace to investors seeking stability amidst turbulent times.

Continue Reading

Crude Oil

Oil Prices Steady as Israel-Hamas Ceasefire Talks Offer Hope, Red Sea Attacks Persist

Published

on

markets energies crude oil

Amidst geopolitical tensions and ongoing conflicts, oil prices remained relatively stable as hopes for a ceasefire between Israel and Hamas emerged, while attacks in the Red Sea continued to escalate.

Brent crude oil, against which Nigerian oil is priced, saw a modest rise of 27 cents to $88.67 a barrel while U.S. West Texas Intermediate crude oil gained 30 cents to $82.93 a barrel.

The optimism stems from negotiations between Israel and Hamas with talks in Cairo aiming to broker a potential ceasefire.

Despite these diplomatic efforts, attacks in the Red Sea by Yemen’s Houthis persist, raising concerns about potential disruptions to oil supply routes.

Vandana Hari, founder of Vanda Insights, emphasized the importance of a concrete agreement to drive market sentiment, stating that the oil market awaits a finalized deal between the conflicting parties.

Meanwhile, investor focus remains on the upcoming U.S. Federal Reserve’s policy review, particularly in light of persistent inflationary pressures.

Market expectations for any rate adjustments have been pushed out due to stubborn inflation, potentially bolstering the U.S. dollar and impacting oil demand.

Concerns over demand also weigh on sentiment, with ANZ analysts noting a decline in premiums for diesel and heating oil compared to crude oil, signaling subdued demand prospects.

As geopolitical uncertainties persist and market dynamics evolve, observers closely monitor developments in both the Middle East and global economic policies for their potential impact on oil prices and market stability.

Continue Reading
Advertisement




Advertisement
Advertisement
Advertisement

Trending