Global Stocks Gained as Joe Biden Inches Closer to the White House
Global stocks responded positively to Joe Biden likely presidency and they have been expanding their gains since the former Vice President established his lead in the race to the White House.
Shares in the Asia Pacific rose to their highest point in almost three years. The MSCI index that measures Asia-Pacific shares, excluding Japan, gained 1.3 percent to reach its highest since February 2018.
While the Japanese Nikkei has gained 1.1 percent to a nine-month high. South Korea and Australia’s indexes added 1.5 percent and 1 percent gains, respectively.
Similarly, Chinese blue chips appreciated by 0.8 percent as talks of Biden making adjustments to some of Trump’s trade dispute with China gained traction.
U.K FTSE 100 and S&P 500 index also expanded their gains on Friday.
“The contest is not over, and President Trump will not go down without a fight, but financial markets are confident to price in a Biden presidency along with a Republican controlled Senate,” said Edward Moya of OANDA.
Experts said while Biden seems to be the likely winner, the possibility of the Democrats taking the Senate is unlikely. Therefore, some have suggested that he would be hamstrung by the Republican majority in the upper house.
“A Biden win without full Senate support means less risk of regulation and higher corporate/personal taxes,” wrote analysts at Nomura in a note.
“Market reaction over the past 24 hours confirms this view, with the US10-year yields declining sharply, and US growth stocks outperforming on prospects of less economic aid.”
Stock Market Opens in The Red on Monday as Dangote Sugar, Zenith Bank, Others Led Losers
Nigerian stock market opened the week in the red following consecutive weeks of strong performance.
In the early hours of the day, investors traded 121.196 million shares valued at N985.177 million in 2,572 transactions.
The Nigerian Stock Exchange market capitalisation dipped by N51 billion from N18.288 trillion to N18.177 trillion. While the NSE All-Share Index declined by 0.29 percent to 34,784.54 index points.
N Nigeria Flour Mills Plc led losers with a 10 percent decline. Followed by Neimeth, Dangote Sugar, Zenith Bank and Guaranty Trust Bank with 9.63 percent, 3 percent, 1.23 percent and 0.86 percent, respectively. See the details below.
Nigerian Stock Exchange Leads Global Stocks, Year-to-date Gain Increased to 30% Last Week
Nigerian Stock Exchange sustained its bullish momentum last week as investors traded a total turnover of 1.816 billion shares valued at N25.791 billion in 31,665 deals.
This was below the 11.400 billion shares worth N35.892 billion transacted in 39,265 deals in the previous week. However, the Exchange managed to sustain its global lead as sentiment remained high despite the economic recession and a series of other uncertainties.
In terms of volume traded, the financial services industry led with 1.274 billion shares estimated at N14.710 billion that exchanged hands in 18,392 deals. Therefore, contributing 70.15 percent and 57.04 percent to the total equity turnover volume and value, respectively.
The conglomerates industry followed with 217.170 million shares valued at N231.809 million and exchanged in 1,226 deals. In third place was the consumer goods industry with a turnover of 113.760 million shares valued at N2.598 billion in 4,568 deals.
Zenith Bank Plc, Transnational Corporation of Nigeria Plc and Access Bank Plc led the most traded stocks in terms of volume. Together, the three accounted for 649.529 million shares valued at N8.104 billion in 6,395 deals and contributed 35.76 percent and 31.42 percent to the total equity turnover volume and value, respectively.
The market capitalisation of listed equities expanded by 2.19 percent to settle at N18.228 trillion while the NSE All-Share Index also gained 2.19 percent or 748.69 index points to 34,885.51 index points, up from 34,136.82 index points recorded in the previous week.
The bourse year to date return rose to 29.97 percent, the highest performer among Bloomberg tracked 93 global stocks. NSE Premium index led with 47.85 percent year-to-date gain while the NSE AFR Div Yield Index trailed with 47.82 percent gain. See the list of top gainers and losers for the week below.
Insider Dealing: Flour Mills MD Invest N91.642 Million in Flour Mills
Following the purchase of 1.95 million shares in Flour Mills of Nigeria a few days ago, the Group Managing Director, Paul Miyonmide Gbededo, has purchased another 1.34 million shares at N27.75k per share.
The company stated in a disclosure form released through the Nigerian Stock Exchange (NSE).
Mr. Gbededo bought an additional 1,336,028 shares valued at N37,074,777 on November 19, 2020 at the Nigerian Stock Exchange (NSE) in Lagos. Meaning, Gbededo invested an additional N37,074,777 into Flour Mills in what could be said as a show of confidence in the company’s future.
This brings the Managing Director’s total purchase in November to 3,284,867 shares at a combined value of N91,642,269. See the details below.
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