Economy

Recession, Fresh Lockdown Fears Plunge Oil Prices by 9%

Published

4 years ago

06/07/2022

By Adedapo Adesanya

Oil prices plummeted by about 9 per cent on Tuesday, with the Brent crude losing 9.5 per cent to sell at $102.77 a barrel and the United States West Texas Intermediate (WTI) crude falling by 8.2 per cent to $99.50 a barrel after it returned after America’s Independence day holiday.

Both benchmarks logged their biggest daily percentage decline since March 9 and hit share prices of major oil and gas companies amid growing fears of a global recession and lockdowns in China.

Analysts noted that the world’s largest economy – the US, may have shrunk in the three months from April through June which would be the second straight quarter of contraction, considered the definition of a technical recession.

With inflation at multi-decade highs, the pace of policy-tightening is not expected to let up in the second half of 2022 after top central banks raised interest rates in June than in any month for at least two decades,

Mass COVID-19 testing in China stocked fears of potential lockdowns that threaten to deepen cuts to oil consumption.

Weeks after lifting its lockdown, Shanghai said it would begin new rounds of mass testing of its 25 million residents over a three-day period, following a new bout of an outbreak.

During the testing, people living in the affected districts would be required to show a test taken within the last two days to leave their homes, it said.

City lockdowns and repeated mass testing in China, part of its zero-COVID policy that aims to eradicate all outbreaks, have brought case numbers down but many of the measures have fuelled anger and taken a toll on the economy.

Although China’s most populous city has lifted a two-month-long lockdown of its 25 million residents, it still imposes targeted curbs on movements whenever a COVID case is found outside quarantined areas.

OPEC Secretary-General, Mr Mohammad Barkindo said on Tuesday that the industry was “under siege” due to years of under-investment, adding shortages could be eased if extra supplies from Iran and Venezuela were allowed.

On the other hand, the Norwegian government on Tuesday intervened to end a strike in the petroleum sector that had cut oil and gas output and worsened Europe’s energy troubles.

The strike would have cut daily gas exports by 1,117,000 barrels of oil equivalent or 56 per cent of daily gas exports, while 341,000 barrels of oil would have been lost in a week.

Economy

CSCS Sinks NASD OTC Exchange by 1.13%

Published

2 hours ago

30/04/2026

Adedapo Adesanya

By Adedapo Adesanya

Central Securities Clearing System (CSCS) Plc weakened the NASD Over-the-Counter (OTC) Securities Exchange by 1.13 per cent on Wednesday, April 29, after its share price shrank by N5.06 to N71.99 per unit from N77.05 per unit.

As a result, the NASD Unlisted Security Index (NSI) went below the 4,000 mark after it lost 45.73 points to 3,999.23 points from 4,044.96 points. The market capitalisation declined by N27.36 billion during the session to N2.392 trillion from N2.420 trillion.

Midweek trading data showed that the volume of transactions slid by 76.2 per cent to 308,698 units from 1.3 million units, and the value of trades decreased by 7.1 per cent to N25.2 million from N27.1 million units, while the number of deals rose by 3.7 per cent to 28 deals from 27 deals.

At the close of business, Great Nigeria Insurance (GNI) Plc remained the most traded stock by value on a year-to-date basis, with the sale of 3.4 billion units valued at N8.4 billion, followed by CSCS Plc with 59.9 million units exchanged for N4.1 billion, and Okitipupa Plc with 27.8 million units traded for N1.9 billion.

GNI Plc also finished as the most traded stock by volume on a year-to-date basis, with a turnover of 3.4 billion units worth N8.4 billion, trailed by Resourcery Plc with 1.1 billion units transacted for N415.7 million, and Infrastructure Guarantee Credit Plc with 400 million units sold for N1.2 billion.

Economy

Naira Strengthens to N1,379/$1 at NAFEX as FX Demand Pressure Eases

Published

3 hours ago

30/04/2026

Adedapo Adesanya

By Adedapo Adesanya

The Naira was able to tame the pressure building at the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Wednesday, April 29, after it gained N1.25 or 0.1 per cent against the United States Dollar to close at N1,379.46/$1 compared with the previous day’s N1,380.71/$1.

Also, the outcome was the same against the Pound Sterling in the same window, as it added N2.18 to trade at N1,861.58/£1 versus Tuesday’s closing rate of N1,863.76/£1, and against the Euro, it appreciated by N2.14 to settle at N1,612.87/€1 versus N1,615.01/€1.

However, the Naira depreciated further against the Dollar at the GTBank forex counter by N10 to quote at N1,389/$1 compared with the preceding session’s N1,379/$1, and at the parallel market, it maintained stability yesterday at N1,390/$1.

The improvement witnessed across official market points to NFEM interbank turnover increasing sharply on Wednesday, with data released by the Central Bank of Nigeria (CBN) showing $249.905 million in transactions among institutions across 180 deals.

This indicates improved market liquidity and greater market confidence, leading to tighter bid-ask spreads across all foreign exchange deals.

Market analysts noted that improved liquidity and growing investor confidence now allow the market to function more independently.

Meanwhile, in the cryptocurrency market, Bitcoin (BTC) and major benchmarked cryptocurrencies fell as Brent crude surged to a four-year intraday high on renewed fears of US military escalation against Iran.

The jump in oil prices reflects a growing war premium tied to the effective shutdown of the Strait of Hormuz and expectations that hypersonic US weapons could be deployed in the region.

Analysts say BTC is unlikely to break above $80,000 unless Middle East tensions ease. Its value shrank by 1.5 per cent to $75,931.00.

In addition, Ethereum (ETH) slipped by 3.2 per cent to $2,254.51, Solana (SOL) depreciated by 1.9 per cent to $83.11, Ripple (XRP) lost 1.6 per cent to sell at $1.37, Binance Coin (BNB) dipped by 1.5 per cent to $616.58, and Cardano (ADA) dropped by 1.4 per cent to $0.2463.

But Dogecoin (DOGE) rose by 1.9 per cent to $0.1062 and TRON (TRX) appreciated by 0.5 per cent to $0.3242, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) were unchanged at $1.00 each.

Economy

Value of Nigerian Stocks Soars Above N152trn, as YtD Return Hits 52.53%

Published

3 hours ago

30/04/2026

Dipo Olowookere

By Dipo Olowookere

The Nigerian Exchange (NGX) Limited rallied by 3.77 per cent on Wednesday on the back of sustained bargain-hunting in equities with sound fundamentals.

The growth reported by Nigerian stocks at midweek raised the year-to-date return above 50 per cent, precisely at 52.43 per cent.

According to data, only the insurance sector ended in red after it shed 1.01 per cent at the close of business.

The industrial goods index appreciated by 6.14 per cent, the energy segment grew by 4.54 per cent, the banking counter expanded by 1.92 per cent, and the consumer goods industry rose by 1.01 per cent.

Consequently, the All-Share Index (ASI) went up by 8,465.40 points to 237,205.59 points from 228,740.19 points, and the market capitalisation increased by N5.450 trillion to N152.728 trillion from N147.278 trillion.

The quartet of UAC Nigeria, Zichis, CAP, and Airtel Africa gained 10.00 per cent each to sell for N165.00, N19.80, N132.00, and N3,021.30, respectively, and Jaiz Bank surged by 9.99 per cent to N8.81.

On the flip side, the duo of John Holt and Cadbury Nigeria lost 10.00 per cent each to trade at N12.60 and N66.15, respectively, as eTranzact shed 9.97 per cent to close at N15.80, Morison Industries slipped by 9.92 per cent to N10.62, and Haldane McCall shrank by 9.74 per cent to N3.43.

The busiest stock for the day was Access Holdings with 281.3 million units worth N7.3 billion, UBA transacted 160.6 million units valued at N7.0 billion, Lasaco Assurance traded 78.6 million units for N153.6 million, Wema Bank sold 65.7 million units worth N2.3 billion, and Morison Industries exchanged 65.0 million units valued at N690.3 million.

At the close of trades, investors bought and sold 1.3 billion equities for N69.1 billion in 83,445 deals versus the 908.0 million units worth N68.2 billion in 72,886 deals on Tuesday.

This showed that the trading volume, value, and number of deals increased yesterday by 43.17 per cent, 1.32 per cent, and 14.49 per cent, respectively.