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Stock Market

U.S Stocks tick up on gains from Oil & Gas, Health

At the close of the New Stock Exchange the S&P 500 index climbed 0.29%, Dow Jones Industrial Average gained 0.37%.

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U.S Stocks set to surge higher, on hopes of a stimulus package deal, What Does The Circuit Breaker Tell Us

U.S. stocks rallied to record highs at the last trading session. Such impressive gains were triggered by significant buying pressure seen in the Oil & Gas, Telecoms, and Healthcare sectors.

What you must know

At the close of the New York Stock Exchange, the S&P 500 index climbed 0.29%, Dow Jones Industrial Average gained 0.37%, and the NASDAQ Composite index surged by 0.47%.

  • The best performers among the biggest listed U.S companies were the Dow Inc which gained 2.39%, trading at 54.48 at the close. Also, Johnson & Johnson ticked up by 1.66% to end at 151.44 and The Travelers Companies was up 1.20% to 135.51 in late trade.
  • The top gainers at the S&P 500 included Equifax Inc which ticked up by 8.17% to 184.79, and Arconic Corp which rose by 5.69% to settle at 30.45.
  • Not forgetting the top gainers at the NASDAQ Composite including Curis Inc, which surged by 347.22% to 6.440 and Lexicon Pharmaceuticals Inc, which ticked up by 71.10% to settle at 2.96.
  • Outperforming stocks outnumbered underperforming stocks on the New York Stock Exchange by 1868 to 1216. 85 remained unchanged on the Nasdaq Stock Exchange, 1757 rallied higher and 1220 dropped, while 83 ended unchanged.

What they are saying

Stephen Innes, Chief Global Market Strategist at Axi, in a note to Nairametrics, spoke on the prevailing market macros triggering U.S stocks to record high:

“US equities nudged higher Tuesday as tech stocks led the gains, recovering from losses early in the session.

“The sentiment was helped by reports suggesting US Republican Senate leader, McConnell, had offered the Democrats a compromise. Also supportive of Main Street concerns, White House officials asked Senate Republicans to include a $600-holiday stocking check for households as part of any stimulus package.

“With the markets starting to exhibit some year-end fatigue, any stimulus holiday stocking will come at a most welcome time and ensure that well-subscribed equity markets will cross the year-end finishing line on a positive note.”

Bottom line

It seems investors are overlooking the negative reports coming from COVID-19 onslaughts amid global investors sentiment and momentum remaining stronger as regards to investing in U.S stocks, on the bias that stock bulls remain very much in the driving seat.

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Olumide Adesina is a France-born Nigerian. He is a Certified Investment Trader, with more than 15 years of working expertise in Investment trading. Message Olumide on Twitter @tokunboadesina. He is a Member of the Chartered Financial Analyst Society.

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Market Views

US Stock markets unruffled about disappointing job report

Wall Street was unshaken as it posted record gains at the end of the week despite a disappointing April job report.

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Apple, Microsoft gain over 1%, propels Nasdaq up

The April unemployment survey in the United States was a puzzler by most accounts. The 266,000 additional payrolls were the largest shortfall in economists’ estimates for nonfarm payrolls since the 1990s when many expected 1 million workers to be added to payrolls last month. However, Wall Street was unshaken as it posted record gains at the end of the week.

While analysts warn that the figure is poor, considering how many people have fallen out of the workforce in the past year, the unemployment rate in April remained remarkably stable at 6.1 percent and the market maintained its bullish pace. The Dow Jones Industrial Average (+0.66%) and the S&P 500 index (+0.74%) posted record closes on Friday, as the weak jobs report affirmed views that the Federal Reserve will keep financial conditions easy for longer.

Despite Friday’s gains, large-cap technology stocks are also lagging behind the overall market. For the year, Apple Inc (AAPL.O) is down almost 2%, Amazon.com Inc (AMZN.O) is up less than 2%, and Netflix Inc (NFLX.O) is down 6.5 percent. Overall, the technology market is up 6.8% year to date, less than half of the S&P 500’s 12.6 percent increase (.SPX).

READ: China, US confirm global recovery, capital market stocks are nearing all-time high

Furthermore, value stocks in cyclical sectors like financials, oil, and consumer sectors are soaring. The Russell 1000 Value index (.RLV) has gained 18 percent this year, including 0.7 percent on Friday, while the Russell 1000 Growth index (.RLG) has gained 6.3 percent this year, including 0.6 percent on Friday.

Although some technology stocks rose on Friday after a lacklustre U.S. unemployment report, some portfolio managers believe that recent blowout profits from many major technology firms are insufficient to justify continuing to make large bets on the industry.

The 266,000 new jobs added in April was a significant decrease from the 770,000 new jobs added in March. The rise in April was fueled by employment growth in the leisure and hospitality sector, which gained 330,000 jobs, with more than half of those in restaurants and bars. Overall, the industry employs 2.8 million fewer people than it did prior to the pandemic.

Wide losses in temporary support providers and couriers and messaging services, as well as smaller drops in manufacturing and retail, reversed those gains. Construction employment remained largely stable.

Because of the high liquidity created by the stimulus package and the FED’s decision to keep rates unchanged, the stock market appears to be immune for the time being. The biggest issue on most people’s mind is how long this positive mood will last in the economy.

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Market Views

Top 10 Stockbroking firms in Nigeria for April 2021

The top ten Stockbrokers traded shares worth N111.8 billion in April 2021, accounting for 69.9% of the total amount of shares traded.

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Governor Fayemi explores investment options with the capital market, Nigerian Stock Exchange, Top 10 stockbrokers trade N120.4 billion worth of stocks in November , Law Union & Rock Insurance Plc Announces Notice of Board Meeting and Closed Period, NSE Hosts First Virtual Automated Trading System (ATS) Broker Certification Training Programme, Steroids from GTBANK, ZENITH Lift Nigerian bourse, as investors gain N94.2 billion, Nigerian bourse close flat, triggered by low market liquidity, Industrial index down by 5.7%, as shares of BUA, Lafarge, Dangote, others decline on NSE

The Nigerian Stock market ended the month of March 2021 bullish as the All-Share Index grew by 2.02% from 39,045.13 points recorded as of March 31st, 2021 to close at 39,834.42 points at the end of April 2021.

Meanwhile, the top-performing stockbroking firms in the Nigerian Exchange Group (NGX) traded about 4.89 billion units of shares with a value of N111.8 billion, accounting for 69.9% of the total value of shares traded in the month.

This is according to the Broker performance Report, released by the Nigerian Stock Exchange for the month of April 2021.

According to the report, Morgan Capital Securities led the list of stockbroking firms by volume of shares while Investment One Stockbrokers traded the highest in monetary terms for the period under review.

READ: NSE-30 companies lose N1.13 trillion in market capitalisation year-to-date


Stockbrokers by value

The top ten Stockbrokers were responsible for 69.9% of the total amount of shares traded in April 2021, trading a total of N111.8 billion worth of shares.

  • Investment One Stockbrokers toppled Stanbic IBTC to top the list with trades valued at N60.91 billion in April 2021, representing 38.08% of the total value of shares traded during this period.
  • Rencap Securities stood at second on the list with trades in stocks valued at N15.59 billion, accounting for 9.75% of the total value of shares traded in the month of April.
  • Cardinalstone Securities followed with its total trades valued at N8.45 billion in the period under review. This represents 5.28% of the total value recorded in the Stock Exchange market.
  • EFG Hermes also traded in stocks worth N7.05 billion, to stand fourth on the list as it accounted for 4.41% of the recorded trades in monetary value.
  • Stanbic IBTC Stockbrokers traded a sum of N4.1 billion worth of stocks, which accounted for 2.57% of the total value for the period.
  • Others include Meristem Stockbrokers (N3.87 billion), Chapel Hill Denham (N3.66 billion), Stonex Financial (N3.36 billion), CSL Stockbrokers (N2.53 billion), and Cordros Securities (N2.27 billion).

READ: REVEALED: Three reasons the NSE expelled 38 stockbroking firms in six months


Stockbrokers by volume

The top ten stockbroking firms for the period under review traded in 4.89 billion units of shares, accounting for 45.01% of the total traded stocks.

  • Morgan Capital Securities tops the list of stockbroking firms in terms of volume of shares traded as it recorded trades in 859.82 million units of shares, representing 7.91% of the total volume traded in the bourse for the period.
  • Cardinal Securities followed, having traded in 835.49 million shares, accounting for 7.69% of the total volume of shares traded in April 2021.
  • Investment One Stockbrokers traded in 566.53 million units of shares in the month under review. This represents 5.21% of the total recorded.
  • Meristem Stockbrokers Limited stands fourth on the list with trades in 564.54 million units of shares in April 2021, accounting for 5.19% of the total volume recorded.
  • FBN Quest Securities traded in a total of 449.25 million units of shares accounting for 4.13% of the total volume recorded in the period under review.
  • Others on the list include EFG Hermes (422.23 million), Rencap Securities (406.6 million), Falcon Securities (312.13 million), Stanbic IBTC (248.43 million), and APT Securities (226.28 million).

What you should know

  • The NSE ASI grew by 2.02% in the month of April 2021, bringing the year-to-date performance to a decline of 1.08%.
  • The NSE Banking Index however dipped by 4.76% in the month of April to close at 352.07 points, while the year-to-date growth stood at -10.42%
  • NSE Industrial Goods index grew by 3.06% in the review period.

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