The Nigerian bourse extended gains to the 4th trading session as the All Share Index (ASI) gained 1.1%; The GSE Composite Index gained 1.00 points to close at 1,982.13; The ZSE Industrial index gained a further 0.28 points (0.28%) to close at 99.78 points; The NSE-20 and NSE-25 gained 21.77pts and 0.33pts to close at 3,884.01 and 4,087.23 respectively...

Do we need to get used to that level of volatility? That summarises somewhat the feeling this week on global markets. Uncertainties around efforts to stabilize oil prices continued to move the market in both directions like a yo-yo. By the end of the week, oil prices wiped away steep losses on news that Venezuela’s oil minister would meet with fellow oil producers next month. This followed Tuesday’s meeting between President Muhammadu Buhari and the ruler of Saudi Arabia, King Salman Bin Abdulaziz Al Saud, during which they both committed to work towards a stable oil market and a “rebound of oil prices”.

Stocks climbed on most markets this week as hopes of major oil producers freezing their output level induced a rebound in oil prices. Hopes were rapidly tempered and oil price gains given up at the end of the week after a Saudi Official declared the country was not prepared to cut production. The end of the week saw a slight sell-off following the big run as some profit-taking took place which is understandable given the uncertainty within current market conditions.

This week was once again marked by volatility on global markets although stock rout eased amid oil advance. Federal Reserve Chair Janet Yellen acknowledged that financial conditions have become less supportive to growth which, when reading between the lines, indicated the US would not rush to raise interest rates again. Luckily, there was a small rebound on stocks on Friday as oil prices climbed by 12% following comments from the United Arab Emirates energy minister stating that OPEC were ready to cooperate on possible production cuts. Moreover, Venezuela suggested that both OPEC and non-OPEC producers should consider freezing output at the current level.