Macroeconomic Report & Economic Updates

Nigeria Economic Update (Issue 10)

In its worst performance since the 2008 financial crisis, the NSE All-Share Index and market capitalization depreciated by 13.49% to close the week at 22,733.35 basis points and N11.847 trillion respectively1. The decline in the market index is underpinned by the Saudi Arabia-Russia oil price war following Russia’s failure to cut oil supplies as well as the coronavirus pandemic. The NSE Banking Index, NSE Consumer Goods Index, and NSE Premium Index were among the worst hit as they fell by 26.2%, 21.7% and 16.1% respectively. Due to the high global connectivity and the dampened demand in developed countries as a result of the pandemic, the downslide in the Nigerian market is similar to ongoing trends in the markets of other African countries, Asia, Europe and North America; and is expected to continue until the risk factors are addressed. While the uncertainty has caused many investors to sell off risky securities such as stock, investors should rather take advantage of the low stock prices to increase their investments as the bearish trend in the market is driven by temporary risk factors and not a fall in companies’ fundamentals.

Download Label
March 13, 2018 - 4:00 am
application/pdf
494.13 kB
v.1.7 (stable)