Global stock markets have been cheered on hopes of fresh fiscal stimulus in the U.S. imminently – but investors must avoid the ‘buy everything’ mindset, warns the CEO of one of the world’s largest independent financial advisory and fintech organisations.
The comments from Nigel Green, chief executive and founder of deVere Group, follows House Democrat leader Nancy Pelosi saying over the weekend that she was “optimistic” regarding a stimulus deal before the presidential election on 3 November.
In Asia, Hong Kong’s Hang Seng gained 0.5% and Japan’s Nikkei climbed 1.1%, South Korea’s Kospi advanced 0.22%, Australia rose on the day, with the S&P/ASX 200 up 0.85%.
Meanwhile, London’s FTSE rose 0.6%, Germany’s Dax rose 0.9% and the Europe-wide Stoxx 600 climbed 0.8%.
U.S. futures also pointed higher.
Mr Green notes: “The possibility of a fresh fiscal stimulus shot in the U.S. – the world’s largest economy – is acting as a catalyst in driving global stocks higher.
“Investors are moving now to buy stocks to bolster their portfolios ahead of the announcements in the coming days when prices will jump even higher – so they’re taking advantage of what they see as the current lower entry points.”
He continues: “Once again, we’re seeing that few things can fuel markets like a stimulus injection – or even the possibility of one.
“Clearly, investors are not wanting to miss the boat, but they must also avoid the ‘buy everything’ mindset for two reasons.
“First, the markets are now assuming that the new stimulus is a done deal – it is not. If negotiations collapse, the market correction could be significant.
“Second, not all shares are created equal and stock markets are heavily unbalanced at the moment. A handful of firms in a handful of sectors are bringing up entire indexes.
“An experienced fund manager will help investors seek those most likely to generate and build their wealth over the long-term.”
The deVere CEO concludes: “Investing over the long-term on stock markets remains, as ever, one of the best and proven ways to accumulate wealth.
“However, investors must remember not to be complacent when an upbeat mood takes over the markets.”
Stock Market Extends Bullish Run in December, Opens the Month With 0.30% Gain
Nigerian stock investors continued to dump more funds on Nigerian equities in December as the Nigerian Stock Exchange opened the month on a positive strong note.
The NSE All-Share Index gained 0.30 percent to settle at 35,147.62 index points while the market capitalisation rose by N56 billion from N18.309 trillion recorded on Monday to settle at N18.365 trillion on Tuesday.
Investors traded 308.181 million shares valued at N3.403 billion in 35,147.62 index points during the trading hours of Tuesday.
Access Bank led the most traded stock 43,368,357 shares worth N376,476,921.75. While First Bank followed with 31,934,748 shares valued at N229,789,381.55. See the details below.
Insider Dealing: MD of Fidelity Bank Acquires 5 Million Shares of Fidelity
Mrs. Nneka Onyeali-Ikpe, the Managing Director and Chief Executive Officer (CEO) Designate, Fidelity Bank Plc, purchased 5,000,000 shares of Fidelity Bank on Monday, November 30, 2020.
The management disclosed this in a statement forwarded to the Nigerian Stock Exchange (NSE).
Onyeali-Ikpe purchased the shares in five different transactions, according to the statement signed by Ezinwa Unuigboje, the Company Secretary, Fidelity Bank Plc.
It said 260,190 shares were acquired at N2.52 per share. While 400,000; 130,000; 2,870,000 and 1,339,810 shares were purchased at N2.55; N2.58; N2.60 and N2.56, respectively.
Aggregate information revealed the 5,000,000 shares were acquired at an average price of N2.56 per share. See the details below.
Despite Opening in Red, The Nigerian Stock Exchange Closed in Green
The Nigerian Stock Exchange closed positive on Monday despite opening the day in the red.
The market capitalisation rebounded from the N51 billion decline recorded earlier in the day to close with N21 billion profit at N18.309 trillion market value.
Similarly, the NSE All-Share Index recovered from a 0.29 percent dip to gain 0.45 percent and closed the day at 35,042.14 index points.
Investors traded 415.531 million shares valued at N4.898 billion in 5,267 transactions during the trading hours of Monday.
Airtel Africa led the most traded stocks with a N53.5 gain to close at N588.5 per share. MTN Nigeria came second with a 20 kobo gain to close at N155.2 a single share. See the details below.
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