Global markets have officially entered into a bear run. In what couldn’t have been worse, the New York Stock Exchange had trading halted for the second day running after the S&P 500 index fell more than 7%, triggering a market halt. During the day’s wild trading session, the Dow Jones Industrial Average (DJIA) dropped by just under 10% in what was the largest single-day percentage decline since the stock market crash in 1987. The market panic has already wiped away more than $11 trillion in global value.
- The Dow fell by 9.99% or 2,352.60 points to close at 21,200.62
- The Nasdaq tumbled 9.43%, or 750.25, to close at 7,201.80
- The S&P 500 dropped 9.5% or 260.74 points to close at 2,480.64
By Thursday’s close, the S&P 500 dropped 9.5%, or 260.62 points, in its largest percentage decline since the Black Monday crash of October 19, 1987. The blue-chip index slid more than 20% in total from its recent closing high from mid-February, sending it into a bear market.The Dow’s 9.99% decline Thursday was also the biggest since 1987, and constituted a drop of 2,352.6 points.
As the Nairobi Securities Exchange opens today, it remains unclear if it will follow bear markets after South Africa’s Johannesburg Stock Exchange slid into a bear run, South Africa is one of the countries in Africa that have confirmed the new strain of the COVID-19 and is now on high alert of a growing number in the country.
KCB Group yesterday announced an averagely flat results, with a bear run looming, KCB will be one of the most hit counters with a likelihood to hit prices of around 42.25. The Group’s net interest income expanded 14.9 percent to Sh56.1 billion last year from Sh48.8 billion in 2018. The growth was supported by a 17.4 percent increase in the loan book to Sh535.3 billion from Sh455.8 billion as the bank prepares to take advantage of the removal of the interest rate caps to improve earnings.
The crypto markets haven’t been let out as well, Bitcoin fell way below $6,000.
Elsewhere Thursday, oil prices were hammered, with benchmark Brent North Sea crude losing more than seven percent, as the travel restrictions will further dampen energy demand.
The oil market was already under pressure after Saudi Arabia and Gulf partner UAE stepped up a price war on Wednesday by unveiling plans to flood global markets. The Saudi move was the latest escalation of a fight among oil producers after Russia balked at an OPEC-backed plan to cut production in response to lost demand because of the coronavirus.
Here’s a rundown of what happened as Nairobi was asleep.
Stocks
• The S&P 500 Index declined 9.5% at the close of trading in New York; the Dow Jones Industrial Average lost 10%.
• The Stoxx Europe 600 Index fell 11%.
• The MSCI Asia Pacific Index dipped 5.4%.
• The MSCI Emerging Market Index sank 6.6%.
Currencies
• The Bloomberg Dollar Spot Index gained 1.1%.
• The euro weakened 0.6% $1.1204.
• The Japanese yen fell 0.5% to 105.1 per dollar.
Bonds
• The yield on 10-year Treasuries rose one basis point to 0.88%.
• Germany’s 10-year yield fell one basis point to -0.75%.
• Britain’s 10-year yield declined three basis points to 0.26%.
Commodities
• West Texas Intermediate crude declined 5.8% to $31.07 a barrel.
• Gold weakened 4% to $1,569.79 an ounce.
