Global Equities Rally as US, Iran Keep Peace Talks Open
Global equities rallied as easing inflationary concerns on the back of optimism around a potential United States-Iran peace agreement boosted investor sentiment across major markets.
U.S. President Donald Trump on Wednesday said the United States was ready to proceed with further attacks on Tehran if Iran did not agree to a peace deal, but suggested Washington could wait a few days to “get the right answers.”
On Wall Street, the S&P 500 gained 1.08%, the NASDAQ rose 1.54%, and the Dow Jones advanced 1.31%, following reports of progress in the negotiations.
European markets also ended sharply higher, with the Euro Stoxx 50 climbing 2.13% and the FTSE 100 adding 0.99%. In Asia, Japan’s Nikkei 225 surged 3.65%, and Australia’s ASX 200 rose 1.64%.
The Hang Seng Index, however, is trading relatively flat at -0.01%, reflecting more cautious sentiment in China despite the broader global rally.
South Africa
The JSE is expected to open firmer this morning following a positive previous session, with global futures marginally higher and commodity prices remaining well supported as investors continue to monitor positive headlines surrounding United States-Iran negotiations.
Most Asian markets are trading higher, however, Tencent has declined 1.76%, which may weigh on Naspers and Prosus in early trade. The ASX 300 Metals & Mining Index is up 2.75%, providing a constructive backdrop for local resource shares.
The local bourse rebounded well on Wednesday as local investors digested the local inflation print amid an improving global risk backdrop. By market close, the JSE All Share Index was up 0.86% and the Top 40 jumped 0.99%.
Resources gained 2.15% on the day with the Precious Metals & Mining index (+2.65%) being the standout subsector.
AngloGold Ashanti surged 3.4%, while Harmony Gold was the single biggest mover on the index, jumping 5.8%, as gold prices remained elevated and sentiment around the sector improved. Financials jumped 1.25%, while Industrials bucked the trend and declined 0.47%.
NIGERIA
The Nigerian equities market closed on a bearish note as the benchmark All-Share Index (ASI) declined by 102bps, although the market maintained a strong year-to-date return of 60.05%.
Market breadth remained positive, with 41 gainers against 24 losers, reflecting selective buying interest across pockets of the market. ZICHIS and ABCTRANS led the gainers’ chart with gains of 9.99% apiece, while BUACEMENT topped the losers’ list after declining by 10.00%. In terms of activity, ACCESSCORP emerged as the most traded stock by volume with 55.96 million shares, while ZENITHBANK led the value chart with transactions worth ₦4.81bn.
Despite Sectoral performance was largely negative as the NGX Banking Index fell 31bps due to losses in FCMB (-3.36%), GTCO (-0.48%) and ACCESSCORP (-0.39%), despite gains recorded in ZENITHBANK (+0.04%), UBA (+0.22%), WEMABANK (+0.61%), FIDELITYBK (+2.17%) and STANBIC (+2.41%).
The NGX Consumer Goods Index lost 45bps following declines in INTBREW (- 5.38%), CHAMPION (-1.38%) and NB (-0.48%), while gains in DANGSUGAR (+1.72%), NASCON (+1.90%), MCNICHOLS (+9.79%) provided some support.
The NGX Oil and Gas Index dipped 10bps on the back of weakness in OANDO (-3.13%), although JAPAULGOLD (+9.95%) advanced strongly.
The NGX Industrial Index recorded the steepest decline, losing 384bps due to selloffs in BUACEMENT (-10.00%), CAP (-9.99%) and AUSTINLAZ (-4.76%) while CUTIX (+0.32%), WAPCO (+2.09%) gained points. Market activity remained relatively quiet, with ZENITHBANK, MTNN and NGXGROUP driving trades, while cross trades were also recorded in ZENITHBANK. Excess Liquidity Tops N6trn as CBN Keeps Interest Rate High
