Especially in 22nd February 2011, stocks fall in the worst drop in this year 2011. Because of Libya unrest, price of oil up like shoot rocket (the reason is the leader of Libya country - Moammar Gadhafi held to power and face protests).
Libya is the country that export oil in the rank of 15th of the world and has the largest reserves in Africa continent.
It's not surprised that the situation in Libya effects to stock market and oil market. For the situation in stock market, the Dow Jones is down 178.46 points. It's the maximum drop when compare to 16th Nov, the nasdaq is down 77.53 and S&P is down 27.57. Now oil price up 6% -> 95% in a barrel.
The big problem of investors in penny stocks is the possible that unrest might spread to oil-rich countries in the Middle East and North Africa.
Therefore, Moammar Gadhafi announced to fight to the end contacted his supporters to fight against protest. Investors of buying penny stocks still need to follow the update news of Libya unrest and hope this situation will end quickly (people are injured and die more than 100 people). In my opinion, the Libya unrest might continue many days.
Penny stocks is the one of high risk investment (plus with many factors), so investors should think carefully before buy penny stocks.
Source: Stock Professors, Yahoo! Finance
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