The current global stock market sell-off will be seen by investors as a “major buying opportunity” as they go “bargain-hunting” to top-up their portfolios, affirms the CEO of one of the world’s largest independent financial advisory and fintech organisations.
The comments from Nigel Green, the chief executive and founder of deVere Group, come as European and Asian markets fell on Friday, following an aggressive sell-off on Wall Street on Thursday.
The tech-orientated Nasdaq Composite index plunged 5% while the benchmark S&P 500 tumbled 3.5%.
Tech stocks took the biggest hit, with the likes of Apple down 8%, Tesla 9%, Microsoft 6% and Amazon 5%.
Mr Green says: “Some companies were over-priced and over-bought and this underscores that some of the froth is coming off.
“Although tech stocks bore the brunt of Wall Street’s sell-off, the digital revolution that’s taking place right now, with our daily lives becoming ever more digitalised at a staggering speed, means tech will remain one of the mega-trends for investors for the foreseeable future.
“Savvy investors will be drawn to the massive growth and opportunities that tech offers.
“With some of the heat being taken out, they will – perhaps more judiciously than before – seek to capitalise on this dip.”
He continues: “With some talk of markets being on the brink of correction territory, profit-taking, mispricing of high-quality equities, and lower entry points, this will be seen by many as a major buying opportunity – especially after global equity markets recently hit new highs.
“As ever in times of increased turbulence, there will be winners and losers. A professional fund manager will help investors take advantage of the opportunities that volatility presents and mitigate potential risks.”
In the current volatile environment, Mr Green opines that investors should be revising their portfolios and “drip-feeding new money into the market to take advantage of the opportunities whilst simultaneously reducing risk.”
This, he added, is “what I will be doing as an investor.”
The deVere CEO concludes: “Where possible, investors should use the turbulence to their financial advantage.
“No–one knows for sure what will happen in the immediate future, but history shows that stock markets typically rise over the longer-term.
“As such, over the coming days, many investors will be bargain-hunting.”
Nigerian Stock Market Loses N259 Billion Amidst Medium-Cap Company Declines
In a day marked by losses in the equities of several medium-cap companies, the Nigerian Exchange Limited lost N259 billion in market capitalization.
BUA Cement led the loser’s chart with a 10% decline in share value to close at N93.60 per unit from N104 it settled the previous session.
Other impacted stocks contributing to the market downturn included Dangote Sugar (-0.43%), Lafarge (-0.17%), Oando Plc (-2.12%), Fidson (-3.53%), NGX Group (-0.68%), Zenith Bank (-0.43%), and United Bank for Africa (-0.23%).
The overall market capitalization and All-Share Index saw a 0.66% decrease to N38.823 trillion and 70,946.83, respectively as the year-to-date returns dipped to 38.43%.
Despite the overall decline, positive market sentiments persisted, resulting in 33 gainers and 26 losers.
The top gainer was the paper company, Thomas Wyatt, gaining 10% and closing at N2.75 per unit.
First Bank of Nigeria Holdings and Daar Communications also made significant gains, closing at N24.35 per unit (up 9.93%) and N0.34 (up 9.68%), respectively.
On the losing side, BUA Cement’s 10% decline was followed by McNichols, down 9.33%, and Computer Warehouse Group, which lost 7.50%.
The real estate firm, UPDC, also dipped by 7.14%, closing at N1.17.
Volume drivers for the day included Universal Insurance, Transnational Corporation, Airtel Africa, and GTCO.
Three out of five sectors tracked closed in the red zone, with the Insurance, Oil/Gas, and Industrial Goods indexes recording losses while Banking and Consumer Goods sectors saw slight advances.
Cowry Asset Management Limited researchers anticipate a dynamic week for investors as they navigate potential profit-taking and corrections amid global events, fixed-income yields, and Central Bank of Nigeria policies.
Nigerian Stock Exchange Bounces Back, Gains N132 Billion in Market Cap
The Nigerian Exchange Limited rebounded on Wednesday with the market capitalization surging by N132 billion.
This uptick was propelled by the positive performance of key stocks, including Seplat Energy (+10%), Meyer Plc (+9.79%), Sunu Assurance (+9.56%), Nestle (+9.52%), and Consolidated Hallmark Holdings Plc (+9.24%).
The All-Share Index closed rose by 0.34% to 71,283.34 points, reflecting investors’ optimistic sentiment, particularly in medium and large-cap stocks with solid fundamentals while the market capitalization increased to N39.007 trillion.
Despite a decline in total deals and volume by 19.14% and 32.55% to 6,579 deals and 360.60 million units respectively, the total value for the day increased by 17.64% to N6.61 billion.
Among the gainers, Seplat, Meyer, Sunu Assurance, Nestle Plc, and Consolidated Hallmark Holdings Plc stood out, closing at N2.310, N3.59, N1.49, N1.150, and N1.30 per unit, respectively, after gains ranging from 10% to 9.24%.
The losers’ chart was led by Guinea Insurance, down 10%, followed by Omatek (-9.88%), Abbey Mortgage Bank (-9.68%), Neimeth Pharma (-9.45%), and Tantalizer (-8.62%).
Performance across sectors was predominantly bullish, with the Insurance, Consumer Goods, Oil/Gas, and Industrial Goods indexes recording notable advancements of 1.17%, 0.89%, 6.06%, and 0.01%, respectively.
However, banking stocks emerged as the only laggard for the day, declining by 0.56%.
GT Bank (GTCO) dominated trading activities, emerging as the most traded security in terms of volume and value, with 56.91 million units worth N2.19 billion traded in 261 deals.
This positive momentum signals a renewed fervor in the Nigerian stock market.
Robinhood Expands to UK, Introducing Commission-Free Stock Trading
Robinhood Markets Inc., the pioneer of commission-free stock trading, is venturing into the UK market, making its international debut by offering British retail investors access to more than 6,000 US-listed stocks and other securities.
This move follows the company’s success in the US during the Covid pandemic, where it gained popularity among first-time investors during the “meme-stock” frenzy.
While the enthusiasm among retail investors has cooled, Vlad Tenev, Robinhood’s CEO and co-founder, aims to disrupt the UK market by offering a range of attractive features.
Tenev stated, “We’d like to help lower fees for all customers in the UK, just like we did in the US back in 2019, right before Covid.”
The features include 5% interest on uninvested cash, zero trading commission, currency fees, and trading outside of market hours. Users can join a waitlist now, and the service aims to be fully available starting in 2024.
Despite facing regulatory scrutiny in the US for its role in the “meme-stock” frenzy and accusations of encouraging excessive risk-taking, Robinhood has ambitious plans for international expansion.
The company will compete with local platforms like Revolut and Freetrade, as well as US-based rival Public.com, which expanded to the UK in July.
Tenev believes that Robinhood’s technology-focused approach gives it an edge in expanding globally.
He emphasized, “The fact that we’ve built this platform from the ground up and we’re a technology company and financial services, not a brick and mortar institution, I think makes us more able to expand internationally in ways that traditional financial institutions can’t.”
Robinhood also plans to introduce crypto trading in the European Union in the coming weeks, further diversifying its offerings beyond traditional stocks.
Despite a recent 11% decline in transaction-based revenues in Q3 2023, Robinhood continues to explore new revenue streams, including the launch of a credit card in the US.
The company’s shares, although up 10% this year, remain 90% lower than their peak.
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