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Stock Investors Pricing-in Joe Biden Win Ahead of U.S Presidential Election

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Wall Street New York Stock Exchange

A Biden Win is Priced-in, Unusually Markets Seem to Support ‘Blue Wave’ Victory

Stock markets are already pricing-in a Biden win in the U.S. presidential election in 11 days – and, against conventional wisdom, a Democrat victory will be welcomed by investors.

The assessment from Nigel Green, the CEO of one of the world’s largest independent financial advisory and fintech organisations, comes as President Trump and Joe Biden faced off in their final 2020 presidential debate on Thursday night.

The candidates sparred over the coronavirus pandemic, the stock market, the economy, immigration and foreign policy.

Mr Green comments: “The last debate was certainly more civil than the previous encounter, but it didn’t add much more to what we already know about the candidates’ personal and policy differences.

“Therefore, we can expect the markets to continue pricing-in a Biden win, something which has begun in earnest in recent weeks.

“This has been evidenced by investors piling into renewables, industrials and other sectors that could benefit from Joe Biden sweeping into power on a ‘blue wave’ victory.”

He continues: “Conventional wisdom suggests a Democratic win would be negative for markets due to higher taxes, more regulation, and higher spending amongst other things.

“But there’s nothing conventional this time around.”

The deVere CEO notes: “The massive extra stimulus of up to $3trn wanted by Democrats in January would buoy the markets and would have investors think about a broader-based economic recovery – rather than a narrower, tech-heavy one.

“Cyclical stocks are likely to outperform on the back of this fiscal stimulus and the inflationary expectations.

“This scenario would prompt most analysts to upgrade U.S. economic growth forecasts.”

He adds: “In addition, there is likely to be a cooling down of tensions with China on trade and other issues which have been important sources of turbulence on stock markets over the last four years.

“More stability and certainty from the White House will be championed by investors.”

Mr Green concludes: “Wall Street does have a hit-and-miss track record of predicting the election outcomes, but for now markets are betting on Biden – and, unusually, they seem to favour a significant Democrat win.”

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Nigerian Stock Exchange

Stocks on Nigerian Exchange Limited Sustains Gain on Tuesday

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Stock Bull - Investors King

Listed stocks on the Nigerian Exchange Limited gained N36 billion on Tuesday to sustain Monday’s positive momentum.

The bourse All-Share Index rose by 0.18 percent from 39,312.74 index points on Monday to close at 39,382.96 index points on Tuesday. While the market value of listed equities expanded by N36 billion to settle at N20.527 trillion, up from N20.491 trillion recorded on Monday.

Investors traded 296.596 million shares valued at N3.362 billion in 4,265 transactions during the trading hours of Tuesday.

Meyer led gainers with N0.05 or 9.62 percent gain to close at N0.57 per share. This was followed by Presco with N6.90 or 9.58 percent gain as shown below.

Stock Market Snapshot

ASI 39,382.96
DEALS 4,265.00
VOLUME 296,596,623.00
VALUE N 3,361,573,907.37
EQUITY CAP N 20,527,328,320,996.84
BOND CAP N 17,216,586,380,738.50
ETF CAP N 18,261,586,163.62

Top Gainers

Symbols Last Close Current Change %Change
MEYER N0.52 N0.57 0.05 9.62%
PRESCO N72.00 N78.90 6.90 9.58%
UAC-PROP N0.76 N0.83 0.07 9.21%
AFRIPRUD N6.00 N6.55 0.55 9.17%
UNITYBNK N0.55 N0.60 0.05 9.09%

Top Losers

Symbols Last Close Current Change %Change
REGALINS N0.34 N0.31 -0.03 -8.82%
HONYFLOUR N1.20 N1.13 -0.07 -5.83%
CUTIX N2.21 N2.10 -0.11 -4.98%
UCAP N6.00 N5.76 -0.24 -4.00%
WAPIC N0.53 N0.51 -0.02 -3.77%

Top Trades

Symbols Volume Value
ACCESS 58,558,705.00 N494,147,223.85
UACN 38,274,061.00 N394,222,603.70
FIDELITYBK 27,150,533.00 N62,355,969.20
ZENITHBANK 26,421,735.00 N609,738,886.60
TRANSCORP 15,626,067.00 N14,179,618.10

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Global Sell-off Should be a Reality Check for Investors: deVere CEO

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Global Sell off - Investors King

Concerns about inflation that are rattling global stock markets on Tuesday should be used as a reality check for investors, says the CEO of one of the world’s largest financial advisory and fintech organizations.

The observation from Nigel Green, chief executive and founder of deVere Group comes as the pan-European Stoxx 600 index dropped 2.3%, with London’s FTSE 100 falling 2.4%.

Losses in Europe follow those in the Asia Pacific region. Hong Kong’s Hang Seng closed more than 2% lower and Japan’s Nikkei 225 ended the Tokyo trading session having shed more than 3%.

Meanwhile, U.S. futures are down across the board ahead of the opening bell in New York.

Mr Green says: “It is to be expected that there would be a jump in prices and supply shortages, in goods like chips and some commodities, as economies re-open and pent-up demand is unleashed by households, businesses and entire industries.

“We’re at a point of major readjustment following an unprecedented economic shock and this is fuelling concerns that rising inflation will trigger central banks to tighten monetary policy which will hit asset prices.

“It is this scenario that is rattling markets and triggering a global sell-off.”

He continues: “Tech shares are bearing the brunt of the sell-off, but this will also be used as an opportunity.

“With our daily lives becoming ever more digitalized – and at a staggering pace – tech will remain one of the mega-trends for investors for the foreseeable future.

“Savvy investors will be drawn to the massive growth that tech offers and this sell-off will used as a buying opportunity.  Nobody seriously believes the future isn’t online.”

Therefore, says Mr Green, investors would be wise to be “selective” about the sell-off.

“With some of the heat being taken out of the markets, with some stocks way too high, they are likely to – perhaps more judiciously than before – move to capitalize on this dip.”

The deVere CEO concludes: “Of course, I don’t have a crystal ball, but history shows that stock markets typically rise over the longer-term.

“Therefore, in the near future, I predict many investors will be seeking out the buying opportunities that exist.”

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Nigerian Stock Exchange

Investors Jump on Union Bank of Nigeria’s Shares Amid Acquisition Rumour

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Union bank - Investors King

Shares of Union Bank of Nigeria Plc, a leading financial institution in Nigeria, rose by 50 kobo or 9.26 percent on Monday following reports that Atlas Mara Limited, a 49.7 percent owner in the bank has been talking to investors to sell its stake.

Investors King had reported that Bloomberg sources claimed Atlas Mara Limited, a London Stock Exchange-listed pan-African banking group started by Mr. Bob Diamond is in talks with Zenith Bank, Access Bank and other investors across Africa to sell its holding in the bank.

Since the report became public investors have been acquiring shares of Union Bank in case Zenith Bank or Access Bank, one of the leading banks in the country, acquire it. Even the bank’s CEO, Godson Chukwuemeka Okonkwo, purchased an additional 2,431,917 ordinary shares of the bank on Thursday, according to the bank’s latest disclosure filing.

Union Bank of Nigeria was the third-highest gainer on Monday.

The Nigerian Exchange Limited gained N59.4 billion on Monday to close at N20.491 trillion on Monday.

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