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Stock Market

Global stocks plunge over doubts of America’s economic recovery

The pan-European STOXX 50 was down 0.85% and London’s FTSE 100 dropped 1.17% at 11.02 am GMT.

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Global stocks plunge over doubts of America's economic recovery

Asian and European stock markets had a poor showing on Thursday, after minutes of the U.S. Federal Reserve’s latest meeting revealed doubts about the recovery of the world’s largest economy.

MSCI’s broadest index of Asia-Pacific shares outside Japan, witnessed its biggest daily plunge in five weeks. Similarly, the MSCI world equity index, which monitors shares in 49 countries, was down 0.6%

The pan-European STOXX 50 was down 0.85% and London’s FTSE 100 dropped  1.17%, as at 11.02 am GMT

Quick fact: Global stock funds are an important part of a diversified portfolio for every investor hoping to invest in different equity markets.

READ: CBN to set up $39.4 billion infrastructure development company with AFC, NSIA

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Global stock funds have the ability to facilitate investments in both local and international listed companies on exchanges, helping you take advantage of the present macros happening in the global economy.

The Fed’s minutes from its July meeting, released yesterday, revealed doubts about the U.S. economic recovery. The minute showed that the swift labor market rebound seen in May and June had likely slowed.

Several Fed policymakers said they may need to ease monetary policy to help get the economy through the COVID-19 pandemic.

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READ MORE: This stock has a potential to fetch 100% return

Stephen Innes, Chief Global Market Strategist at AxiCorp, in his explanatory note to Nairametrics on the prevailing macros bringing the bears back to the global equities market, said:

“In no uncertain terms, the FOMC minutes deflated the markets’ U.S Federal Reserve air balloon as they unequivocally temper September.

“Without the Fed’s air balloon floating markets today, stocks are temporarily succumbing to forces of gravity.

“With interest rates likely staying low for the next 2-3 years, it is unlikely US stocks will have to deal with a particularly deep or intense air pocket as the wall of money argument seems always to win out.

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“US equities were weaker overnight with the S&P stepping back from its record close on Tuesday.”

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Stocks had been bubbly and trading stronger for most of the session, but turned lower after the Fed minutes tempered expectations for more near-term monetary easing.

Olumide Adesina is a France-born Nigerian. He is a Certified Investment Trader, with more than 15 years of working expertise in Investment Trading and Financial Market Analysis. Member of the Chartered Financial Analyst Society. You can follow Olumide on Twitter @tokunboadesina or email [email protected]

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Stock Market

Nigerian stocks on steroids, investors on hat trick

Market breadth closed positive as NESTLE led 41 Gainers as against 5 Losers topped by ROYALEX.

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Closed Period

Nigerian bourse continued its impressive run for 3 days amid many odds weighing other financial markets.

  • The All Share Index gained by +1.58% to close at 29,437.60 points, as against +0.70% appreciation recorded on Tuesday. Nigerian Stock Exchange market capitalization now stands at N15.4 trillion.
  • Its Year-to-Date (YTD) returns currently stands at +9.67%.
  • That said, Nigerian bourse trading turnover dropped by 2.68%, as against the 13.14% gain recorded on Tuesday. ZENITHBANK , FIDELITYBK, and ETI were the most active to boost market turnover.
  • Market breadth closed positive as NESTLE led 41 Gainers, as against 5 Losers topped by ROYALEX at the end of today’s session – an unimproved performance when compared with the previous outlook.

Top gainers

  1. NESTLE up 10.00% to close at N1292.5
  2. CONOIL up 9.80% to close at N19.05
  3. FLOURMILL up 6.42% to close at N28.2
  4. TOTAL up 5.97% to close at N118.9
  5. DANGCEM up 2.17% to close at N155.3

Top Losers

  1. ROYALEX down 8.00% to close at N0.23
  2. CUTIX down 6.84% to close at N1.77
  3. HONYFLOUR down 1.03% to close at N0.96
  4. AFRIPRUD down 0.85% to close at N5.85
  5. MAYBAKER down 0.33% to close at N3.05

Outlook
Nigerian Stocks got fired up amid falling oil prices and the U.S dollar gained strongly at the mid-week trading session.

  • Buying pressure was significantly seen across leading NSE 30 Stocks like Dangote Cement, Nestle, and not forgetting Total which recently declared a profit after tax of N500million in Q3 thereby beating market analysts forecasts.
  • Nairametrics, however, envisages cautious buying as the COVID-19 crisis seems to be getting out of hand in Nigeria’s key international markets that include Western Europe and the United States.

GTBank 728 x 90
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Stock Market

GTBank, Cadbury, keep Nigerian Stocks fired up, Investors gain N105.76 Billion

Market breadth closed positive as LINKASSURE led 46 Gainers as against 2 Losers topped by WEMABANK

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Value of shares traded by top 10 stockbrokers up 133% despite COVID-19, investors, Raging Bulls lift Brent Crude price by 10%

Nigerian Stock Market ended the Tuesday trading session on a bullish note.

The All Share Index gained by 0.28% to close at 28,777.96 basis points as against +0.28% appreciation recorded previously. Its Year-to-Date (YTD) returns currently stand at +7.21%, and investors gained 105.76 Billion.

READ: #EndSARS protests curb Bulls at the Nigerian Stock Market

  • Nigerian bourse trading turnover also ended positively as volume ticked up by +20.44%, as against the +20.44% uptick recorded in the previous session.
  • FBNH, ACCESS, and FIDELITYBK were the most active to boost market turnover. CILEASING led the list of active stocks that recorded an impressive volume spike at the end of today’s session.
  • Market breadth closed positive as LINKASSURE led 46 Gainers as against 2 Losers topped by WEMABANK at the end of today’s session – an improved performance when compared with the previous outlook.

READ: Why you should avoid investing long term in Nigeria’s stock market

Top gainers

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  1. FLOURMILL up 9.50% to close at N26.5
  2. CONOIL up 9.81% to close at N17.35
  3. CADBURY up 9.21% to close at N8.3
  4. GUINNESS up 5.63% to close at N16.9
  5. GUARANTY up 1.96% to close at N31.25

READ: #EndSARS: FG creates new N25 billion Youth Fund, to increase to N75 billion in 3 years

Top Losers

  1. WEMABANK down 1.72% to close at N0.57
  2. NEM down 1.46% to close at N2.03
  3. DEAPCAP flat to close at N0.27
  4. UNIONDICON flat to close at N10.95
  5. MOBIL flat to close at N178.3

READ: Nigerian bourse close flat, triggered by low market liquidity

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Outlook
Nigerian Stocks were all fired up at Tuesday’s trading session. The surge is partially attributed to the leading blue-chip stocks that includes GTBank, Cadbury, Conoil, and Flour mills.

  • Buying pressure got intensified as Nigeria’s major export earning – crude oil recorded impressive gains amidst the falling US dollar.
  • Nairametrics, however, advises that you seek to buy stocks from a certified stockbroker, as some local equities exhibit cyclic returns.

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Stock Market

Dangote Cement, Ecobank up, investors gain N42.3 billion

The market breadth index was positive with 27 gainers against 15 losers.

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Closed Period

Nigerian bourse continued its bullish run as seen in the first trading session of the week. The All Share Index ticked up by 0.28%, to close at 28,777.96 points, with the year-to-date return at +7.19% and market capitalization at N15.04 trillion. Investors were up by N42.28 billion

  • A total volume of 340.8 million units of shares, valued at N5.56billion exchanged hands in 4,235deals. GUARANTY was the most traded shares by volume and value at 56.7million and units and N1.73billion, while ZENITHBANK followed with 47.7million units and N1.01 billion respectively,
  • The market breadth index was positive with 27 gainers against 15 losers. CUSTODIAN (+5.50%) led the gainer’s chart today, while NASCO (-8.39%) topped the laggards.
  • Sector performance
  • NSE Banking Index: Up by +1.01%, due to price appreciation in ETI (+7.69%), STERLNBANK (3.57%) and UBA (+2.13%).
  • NSE Industrial Index: Up by +0.38%, on gains in DANGCEM (+0.66%) and WAPCO (+0.56%)
  • NSE Oil & Gas Index: Improved slightly by +0.07%, as OANDO advanced by (+0.87%).
  • NSE Insurance Index: Down by -0.99%, on price depreciation in CHIPLC (-8.82%) and WAPCO (-7.50%).
  • NSE Consumer Goods Index: Down by -0.34% price decline in INTBREW (-4.60%).

Top gainers

  1. CUSTODIAN up 10.00% to close at N5.5
  2. ETI up 7.69%  to close at N4.9
  3. FLOURMILL up 5.22% to close at N24.2
  4. GLAXOSMITH up 4.63% to close at N5.65
  5. DANGCEM up 0.66% to close at N152

Top losers

  1. MORISON down 10.00% to close at N0.54
  2. NASCON down 8.39% to close at N13.1
  3. INTBREW down 4.60% to close at N6.01
  4. NAHCO down 2.38% to close at N2.05
  5. DANGSUGAR down 0.72% to close at N13.7

Outlook

Nigerian Stocks recorded impressive gains amid falling crude oil prices.

  • Investors increased their buying pressure on notable blue-chip stocks, most prevalently seen in Dangote Cement, Ecobank, and Flour mills.
  • Investors are rushing into Nigerian Stocks on the hunt for alpha-yielding investments in the face of increasingly negative real returns in the debt market remain positive for Nigerian equities.
  • That said Nairametrics advise investors to trade stocks that exhibit good fundamentals amid growing political uncertainty in spite of the fact that investors await Q3 earnings across the market spectrum.

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