Stock markets are “shrugging-off” the second impeachment of Donald Trump, with the investor focus instead on the stimulus package, affirms 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, comes as the Senate voted that the second impeachment trial of the former President is constitutional, despite calls from his lawyers and most Republicans to reject proceedings.
Democrats now have up to 16 hours over the next two days to make their case in the Senate to convict Trump.
Mr Green says: “The second impeachment of a U.S. President – a major, far-reaching political event in the world’s largest economy – would normally have Wall Street and stock markets around the world in a tailspin.
“But this is not the case.
“Shares in Asia-Pacific were higher on Wednesday, with Chinese stocks leading gains among the region’s major markets. The pan-European Stoxx 600 moved marginally above the flatline at the opening, whilst U.S. futures point to new record highs.”
He continues: “Markets are shrugging off the impeachment noise coming out of Washington, with Trump’s chances of acquittal high.
“Unless the Democrats are unable to get through another round of fiscal stimulus because of the proceedings, it’s likely that markets will continue to ignore the Senate.
“Investors’ focus is on President Biden’s proposed $1.9 trillion stimulus package, specifically whether it will be watered down and when it will be rolled out – with the hope it will be sooner rather than later.
“In addition, they are looking ahead to see the Biden administration’s policies in action and what they really mean for what sectors and industries.
“Investors will also be eyeing the release of January’s CPI figures as they attempt to predict when U.S. inflation will overshoot due to the fiscal stimulus.”
Treasury Secretary Janet Yellen and Federal Reserve Chair Jerome Powell have both been keen to play down the risk of higher inflation from the stimulus. However, rising Treasury yields and measures of inflation expectations indicate otherwise.
The deVere CEO concludes: “It may be ‘round two’ for impeaching Trump, but it’s set to have very little impact on markets. They just aren’t phased. They’re looking ahead, not back.”
Fidelity Bank to Raise U.S$500 Million for General Corporate Purposes
Fidelity Bank, Nigeria’s leading tier-II bank, is planning to raise US$500,000,000 from the international debt capital market through an unsecured note issuance, the bank disclosed in a statement filed with the Nigerian Exchange Limited on Monday.
According to the bank, the proceeds will be used for general corporate purposes and to support its trade finance business.
The proposed aggregate offer size is US$500 million, due 2026, which will when issued ranked parri passu, without preference among themselves, with all other unsecured and unsubordinated obligations of the Bank. The lender intends to list the Notes on the Irish Stock Exchange, with the expectation that the notes will be traded on its regulated market. The Securities and Exchange Commission has confirmed that it has no objection to the transaction.
“In view of the foregoing, the Bank is pleased to notify the Nigerian Exchange Limited of planned investors meetings with respect to the Transaction scheduled to commence today October 18, 2021.
“The final decision to issue the Notes will however be subject to finalising the necessary transaction documentation and prevailing market conditions,” the bank stated.
Nigerian Exchange Group Lists N1.964 Ordinary Shares at N16.15 Per Share on NGX
Nigerian Exchange Group on Friday listed 1,964,115,918 ordinary shares on the Nigerian Exchange Limited’s Main Board following the demutualisation of the Nigerian Stock Exchange.
The listing was after the Nigerian Exchange Limited approved the application of the group to list its entire issued and fully paid 1,964,115,918 ordinary shares of 50 Kobo each at N16.15 per share.
The Group trading symbol NGXGROUP.
Speaking on the listing, Mr. Oscar Onyema, the Chief Executive of NGX Group, said the listing had opened up new opportunities for the company.
He said, “The demutualisation of the Nigerian Stock Exchange created the opportunity to restructure and reposition the organisation to achieve our expanded vision to be the preferred and premier exchange hub for Nigerian businesses and the wider African economy.
“The most significant benefit of our listing on the NGX exchange is the ability it gives us to drive inorganic growth as we add new subsidiaries and business lines that complement our business. This new era is indeed very exciting for us and we look forward to many possibilities achievable from deepening our various partnerships.”
Stock Investors Gained N329 Billion as FBN Holdings Sustained Gains
Investors gained N329 billion at the Nigerian Exchange Limited (NSE) last week as stocks of Champion Breweries, FBN Holdings and others closed in the green.
During the week, investors traded 2.179 billion shares worth N21.963 billion in 22,438 deals, in contrast to a total of 2.187 billion shares valued at N16.183 billion that exchanged hands in 14,377 deals in the previous week.
In terms of volume traded, the Financial Services Industry led the activity chart with 1.770 billion shares valued at N18.058 billion traded in 12,942 deals. Therefore, contributing 81.20 percent and 82.22 percent to the total equity turnover volume and value, respectively.
The Conglomerates followed with 93.178 million shares worth N169.819 million in 736 deals. In third place was ICT Industry, with a turnover of 72.338 million shares worth N1.043 billion in 861 deals.
FBN Holdings Plc, Universal Insurance Plc and Fidelity Bank Plc were the three most traded stocks in the week, accounting for 1.161 billion shares worth N12.338 billion that were traded in 3,460 transactions during the week. The three contributed a combined 53.28 percent and 56.18 percent to the total equity turnover volume and value, respectively.
The market capitalisation of listed stocks gained N329 billion or 1.62 percent from N21.296 trillion recorded in the previous week to N21.625 trillion last week.
NSE All-Share Index appreciated by 1.39 percent or 569.79 index points to close at 41,438.15 index points last week, up from 40,868.36 index points recorded in the previous week.
Similarly, all other indices finished higher with the exception of NGX ASeM Index which closed flat. The exchange extended year-to-date return to 2.90 percent.
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