Connect with us

Markets

Kenya Overturns Nigeria’s 25 Years Lead in Stock Trading

Published

on

Kenyan stock exchange
  • Kenya Overturns Nigeria’s 25 Years Lead in Stock Trading

The value of shares traded on the Kenyan stock exchange surpassed Nigeria’s for the first time on record in September. The value of shares traded on Nigeria’s exchange fell to $139 million, near the lowest since Bloomberg began compiling such data in 2009. In Kenya, which has an economy an eighth the size of Nigeria’s, but which is set to grow by almost six per cent this year, the value rose 4.2 per cent from August to $152 million, according to Bloomberg.

Nigeria is caught between the highest inflation rate in more than a decade and an economy set to contract for the first time since 1991. The naira was allowed to float from June 20, losing more than a third of its value against the dollar since and weakening beyond 300 per greenback for the first time on July 22. The float is anything but free, with Aberdeen Asset Management and Duet Asset Management among investors saying the central bank is holding the naira in a tight range.

“Nigeria’s in a recession and it’s got issues around foreign-exchange liquidity,” Yvonne Mhango, a sub-Saharan Africa economist at Renaissance Capital, said by phone. “If you compare that to Kenya, an economy that’s growing at 5 or 6 percent, a currency that’s stable, basically you’re seeing a reflection of greater interest in Kenya simply because there is growth”.

“Over and above that, in the case of Kenya, if they want to repatriate their money tomorrow, the foreign-exchange liquidity is available, whereas in Nigeria it’s more of an issue: you have to wait a longer time to get your dollars out of the country,” Mhango said.

The lack of foreign-exchange liquidity looms as a greater obstacle to foreign investment in Nigerian than the moribund economy, according to Mhango. “As that clears, you’ll see improved interest, even before the economy starts showing positive growth — as long as the liquidity issue is addressed, you’ll see a pickup in activity.”

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Markets

Oil Prices News: Oil Gains Following Drops in US Crude Inventories

Published

on

markets energies crude oil

Oil Prices Gain Following Drops in US Crude Inventories and OPEC High Compliance Level

Global oil prices extended their 2 percent gains on Thursday after data showed U.S crude oil inventories declined last week.

The price of Brent crude oil, against which Nigerian oil is measured, gained 0.2 percent or 7 cents to $43.39 a barrel as at 12:10 pm Nigerian time. While the U.S. West Texas Intermediate (WTI) crude appreciated by 8 cent or 0.2 percent to $41.12 barrels.

Oil prices extended their three days gain after the American Petroleum Institute said the U.S crude inventories declined by 5.4 million barrels in the week ended October 9.

The report released after the market closed on Wednesday revealed that distillate stockpiles, which include diesel and heating oil, declined by 3.9 million barrels. Those stated drawdowns almost double analysts’ projections for the week.

Much of the fall is due to the effects of Hurricane Delta shuttering U.S. production in the Gulf of Mexico, and as such, will be a transitory effect,” said Jeffrey Halley, senior market analyst, Asia Pacific at OANDA.

“Therefore, I am not getting too excited that a turn of direction is upon markets, although both contracts are approaching important technical resistance regions.”

Also, the report that the Organization of the Petroleum Exporting Countries (OPEC) and its allies, referred to as OPEC+ attained 102 percent compliance level with their oil production cuts agreements bolstered global oil outlook. Suggesting that demands for the commodity are likely not growing and could drag down prices in few weeks, especially when one factor in the reopening of Libya’s Sharara oil field, workers returning to operation in Norway and the Gulf of Mexico.

Continue Reading

Markets

Oil Prices Gain on Tuesday Despite Expected Surge in Global Oil Supplies

Published

on

Oil

Oil Prices Rise Despite Expected Surge in Global Oil Supplies

Oil prices gained on Tuesday despite Libya opening Sharara oil field for production, labour in Norway reaching an agreement with oil firms to return back to work and oil workers in the U.S returning to the Gulf of Mexico region after the Hurrican Delta.

Brent crude oil, against which Nigerian oil price is measured, gained 1.77 percent to $42.46 per barrel as at 11:15 am Nigerian time on Tuesday.

While the US West Texas Intermediate (WTI) crude oil gained 2 percent to close at $40.22 per barrel.

The improvement in prices was after oil prices plunged as much as 3 percent on Monday following a resolution reached by Libyan rebels and government to commence oil production at the nation’s largest oil field, Sharara Oil Field.

This coupled with labour agreement with oil firms in Norway was expected to boost global oil supplies and eventually weighed on prices and disrupt OPEC+ production cuts strategy.

However, prices surged after Nancy Pelosi said she would commence talks on $1.8 trillion stimulus package following President Trump’s return to the White House after he was rushed to hospital following a positive COVID-19 test.

Continue Reading

Markets

Joe Biden Win Could Boost Oil Prices, Says Goldman Sachs

Published

on

Oil price

Oil Prices to Surge Once Joe Biden Wins -Goldman Sachs

Goldman Sachs, one of the world’s largest investment banks, has said Joe Biden win could boost global oil prices despite weak global economic outlook and COVID-19 negative impacts on the world’s growth.

The investment bank, however, remains bullish on both oil and gas prices regardless of the election outcome in November.

The bank sees oil and gas demand rising enough in 2021 to supersede election results but explained that Biden win could bolster prices by making production more expensive and more regulated for producers in the U.S.

In a note written by the bank’s commodities team on Sunday, it said “We do not expect the upcoming U.S. elections to derail our bullish forecasts for oil and gas prices, with a Blue Wave likely to be in fact a positive catalyst.”

“Headwinds to U.S. oil and gas production would rise further under a Joe Biden administration, even if the candidate has struck a centrist tone.”

Goldman Sachs explained that if incumbent, Trump, is re-elected with pro-oil and gas policies in place that “its impact would likely remain modest at best,” Goldman’s analysts wrote, “given the more powerful shift in investor focus to incorporate ESG metrics and the associated corporate capex re-allocation away from fossil fuels.”

Continue Reading

Trending