Stock Market

Stoxx 600 Falls as Tech Sector Drags Down European Markets

Published

2 months ago

August 2, 2024

The European stock market experienced a significant decline for the second consecutive day, with the Stoxx 600 index dropping 1.3% by 9:02 a.m. in London.

This decline was largely driven by concerns over tech earnings and broader economic growth, intensifying a global selloff ahead of key U.S. jobs data.

Tech Sector Leads the Decline

The technology sector was at the forefront of the market drop. Semiconductor stocks were particularly hard hit, following Intel Corp.’s announcement of plans to reduce capital expenditure. ASM International NV saw its shares fall by 7.8%, while ASML Holding NV tumbled 5.3%.

The sector’s struggles reflect broader worries about the sustainability of tech earnings and the potential impact of reduced investments in the industry.

Banks Among the Worst Performers

Banking stocks also suffered significant losses, with the sector heading for its second-largest weekly drop of the year. Swiss stocks were notably affected as trading resumed following a local holiday. UBS Group AG’s shares fell by 5.3%, contributing to the overall negative sentiment.

Mixed Earnings Reports

Despite the broader market decline, there were pockets of positive news. IAG SA, the airline operator, saw its shares rally after reporting second-quarter earnings that beat estimates and announcing the abandonment of a plan to buy a Spanish airline.

Similarly, Axa SA’s shares rose following an underlying profit that exceeded expectations and the announcement of its asset management unit’s sale to BNP Paribas SA.

Awaiting U.S. Jobs Data

Investors are closely watching for the U.S. monthly jobs data, with economists predicting a slowdown in job and wage growth for July. This data follows a report showing that U.S. manufacturing activity shrank in July by the most in eight months, raising concerns about the health of the economy.

Federal Reserve officials have indicated that they may cut rates in September unless there is a significant improvement in inflation.

Market Commentary

Guillermo Hernandez Sampere, head of trading at asset manager MPPM, noted, “When yields and stocks fall together, macrofunds are usually behind them.

The Fed’s statements were used as an opportunity to price in the changed expectations. There are signs of a slowdown in the economy, but a hard landing probably should not occur.”

Sector-Specific Impacts

The European banking sector is expected to remain in focus following the late Thursday selloff. Traders are pointing to a combination of declining central bank interest rates and slowing economic activity as key factors.

Also, the semiconductor sector may continue to face pressure due to the extended slump among global tech stocks and Intel’s capital expenditure plans.

Looking Ahead

As the market braces for the release of U.S. jobs data, the Stoxx 600 is on track for a weekly decline, heading into what is typically the weakest season of the year.

Historically, August and September have been the worst months for the index. The broader market will be watching closely to see if the jobs data can provide any relief or further exacerbate the current selloff.

In the meantime, European stocks continue to grapple with the dual pressures of tech sector weakness and broader economic concerns, setting a cautious tone for investors moving forward.

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Samed Olukoya

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Dividends

Guaranty Trust Holding Company Declares N1 Interim Dividend, Sets October 7 for Payout

Published

4 days ago

September 13, 2024

Investors King

Guaranty Trust Holding Company Plc has announced its plan to pay a sum of N1 per share of 50 kobo as interim dividends, to all registered shareholders on October 7, 2024.

According to a recent statement issued by the company on NGX , “the dividend is subject to withholding tax deduction, and will be paid to shareholders whose names appear in the register as of September 25, 2024.”

In its recently released audited consolidated and separate financial statements for the period ended June 30, the Group reported profit before tax (PBT) of N1.004 trillion, becoming the first Nigerian financial institution to cross the N1 trillion mark in profit.

This represented a 206.6 percent increase over N327.4 billion recorded in the corresponding period that ended June 2023.

The group’s profit for the period was slated at N905.67 billion, a 222 percent increase from 280.52 recorded in the corresponding period that ended June 2023.

“On October 7, 2024, the dividend will be paid electronically to ordinary shareholders whose names appear on the Register of Members as at September 25, 2024, and who have completed the e-dividend registration and mandated the Registrar to pay their dividends directly to their bank accounts,” the statement said.

Nigerian Exchange Limited

Nigeria’s Equities Market Gains 0.32% Boosted by Nestle, Flourmills, and FBN Holdings

Published

4 days ago

September 13, 2024

Investors King

Nigeria’s equities market rose by 0.32 percent or N178billion on Thursday, thanks to Nestle, Flourmills and FBN Holdings that led the league of major advancers on the Lagos Bourse.

FBN Holdings increased from N24 to N26.40, adding N2.40 or 10percent. Caverton rose from N2.10 to N2.31, up by 21kobo or 10percent.

Flour Mills moved from N45.05 to N49.55, up by N4.50 or 9.99percent. RT Briscoe increased from N3.02 to N3.32, down by 30kobo or 9.93 percent, while Nestle rallied from N810 to N890, N80 or 9.88percent.

At the close of trading, the Nigerian Exchange Limited (NGX) All Share Index (ASI) and equities market capitalisation increased from 96,715.04 points and N55.575 trillion respectively to 97,025.17 points and N55.753 trillion.

Access Holdings, FBN Holding, UBA, Caverton and Zenith Bank shares were most trading stocks. In 9,615 deals, investors exchanged 390,546,861 shares valued at N7.974billion.

Ahead of Thursday’s trading, analysts said broader market sentiment will remain balanced, with risk-averse investors maintaining a cautious stance ahead of any major corporate earnings announcements.

Nigerian Exchange Limited

Nigerian Exchange Recovers from Early Week Losses, Market Value Hits N55.6 Trillion

Published

5 days ago

September 11, 2024

Samed Olukoya

Nigerian Exchange Limited - Investors King

The Nigerian Exchange Limited (NGX) rebounded on Tuesday after opening the week in the red.

The NGX All-Share Index appreciated by 0.62 percent to 96,802.8 points while the market value of listed equities stood at N55.626 trillion.

Investors traded 406,194,548 shares valued at N13.313 billion in 12,241 transactions during Tuesday’s trading session.

Investors continued to show interest in Oando, which emerged as the most traded equity in both volume and value.

A total of 58,485,705 shares worth N5.521 billion were exchanged, with Oando’s stock appreciating by N6, or 6.7 percent, from N89.5 to N95.5 per share.

The second most traded stock on Tuesday was Access Holdings Plc with 30,379,481 shares valued at N557.65 million transacted.

However, Access Holdings’ shares lost 55 kobo, or 2.96 percent, declining from N18.95 to N18 per share.

The Exchange’s year-to-date (YtD) return improved to 29.46 percent.

SFS REIT led the gainers’ chart, increasing by N14.80, or 9.98 percent, from N148.35 to N163.15 per share. This was followed by Custodian Investment, which gained N1.10, or 8.87 percent, rising from N12.40 to N13.50, while RT Briscoe moved from N2.82 to N3.10 per share.