As oil prices reached a four-year high of $80/barrel last week, predictions were already rife that they would hit $100 before the end of the year. The decision by President Trump to re-impose economic sanctions on Iran after he pulled the US out of the Iran nuclear deal has certainly increased speculations of an oil supply cut for Iran.
Also, difficulties in Angola and Venezuela’s oil production have also added to the oil price hike. However, analysts have predicted that, except there is a major war between Iran and Israel, the oil price hike will end in 2019, and begin a downward spiral to rival the global oil price slump of 2014.
Below is the Ventures Africa Weekly Economic Index, for the week ending 18th of May 2018. This economic index gives you a glimpse into other recent activities in Nigeria’s economy as well as changes and prices that could affect the economy:
Nigerian Stock Exchange
Data released by the Nigerian Stock Exchange (NSE), as of 18th of May 2018, showed that the All-Share Index depreciated by 1.34 percent from the previous week ending 11th April 2018. Market capitalization at the close of trading during the week under review was N14.660 trillion which was a 1.34 percent decrease from N14.860 trillion recorded the previous week. The All Share Index for the week under review closed at 40,472.45.
Top five price gainers and decliners in the week under review:
Top five price gainers
Sovereign Trust Insurance Plc.
Mutual Benefits Assurance Plc.
NPF Microfinance Bank Plc.
Fidson Healthcare Plc.
Beta Glass Plc.
Top five price decliners
Japaul Oil and Maritime Services Plc.
Skye Bank Plc.
Diamond Bank Plc.
Cement Co. of North. Nig. Plc.
Fidelity Bank Plc.
How did the Naira fare?
In the week under review, the Naira depreciated slightly against the Dollar in the parallel market as at Friday, 18th of May 2018. It was sold at N361/$, reducing in value against the N360/$ it recorded on the 11th of April 2018.
How did the price of oil fare?
Global oil prices rose last week as they reached a four-year high of $80 per barrel. However, as at the ending of last week, oil prices were down slightly at $79.5.