Telecos, banks, others are likely winners amid global lockdowns- FBNQuest

As countries across the globe continue to battle the widespread of coronavirus pandemic, FBNQuest has projected some likely winner amid various lockdowns in most of the affected nations.

The firm, however, says that it pictured that individuals could decide to return to their old habits or alternatives post-coronavirus, but concluded that the world will never be the same again.

In a document by the Head, Macroeconomics and Fixed Income Research, FBNQuest, Gregory Kronsten, and obtained by LBN,explained that in practice, the reality will fall between the two extremes, adding that the first is that ‘new world’ companies will emerge from the crisis stronger.

For instance, Amazon has made itself very useful by transporting medical supplies on behalf of governments (such as the UK) as it has taken the advantage of sit at home under varying degrees of lockdowns, delivering the orders that customers would previously have fulfilled by visiting stores.

The Research firm, also, identified mobile telephone companies as another winner as people across the world are obliged to make use of conference calls and video conferencing for routine conversations with colleagues and clients that often held face-to-face in the office.

“The handful of US corporations capitalized at more than $100 billion (led by Alphabet, Amazon, Apple and Facebook) are set to grow in influence and reach.It will be more difficult for governments to rein them in on the grounds of their perceived monopolistic practices or poor conduct such as failing to close down a terrorist or socially harmful sites”, it explained.

FBNQuest, also pointed out financial service providers, as e-banking has received a boost due to the confinement of people to their homes, stating that the loser is likely to be cash transactions for health reasons and for practicality. But added that the Central Bank of Nigeria (CBN) cash-lite and financial inclusion programmes appear healthier in this light.

According to the fir, the crash in the oil price due to the weakening of domestic demand that was already evident before the onset of the virus has given fresh legs to fossil fuels.

“The argument for the substitution of crude has weakened with the price at +/- US$25/b. Even as oil companies are adjusting by deferring share buybacks and capital spending, led by the majors. Governments of oil producers have to adjust with fiscal retrenchment too, Nigeria being one of many examples.”