Global Equity Markets Firmer, AI-Linked Names Drive Wall St. Gain
Global equity markets open firmer on Monday amid surging demand for AI and tech stocks on Wall Street and across Asian bourses, and a strong performance in the S&P 500.
Market sentiment improved on the back of geopolitical stability, as both the US and Iran continue to engage in nuclear enrichment discussions towards finding peace in the Middle East.
Global equity markets closed the previous session modestly firmer, supported by a sharp pullback in oil prices, First National Bank (FNB) said in its morning brief.
The bank confirmed that, driven by renewed optimism about a potential United States-Iran breakthrough, concerns about sustained energy-driven inflationary pressures have been reduced.
On Wall Street, the Dow Jones rose 0.58% on Friday, the S&P 500 gained 0.37%, and the NASDAQ added 0.19%, as investors balanced resilient corporate earnings against improving inflation expectations.
Across the pond, European markets were in good stride, with the FTSE 100 up 0.22% and the Euro Stoxx 50 advancing 0.99%, supported by cyclical sectors and a weaker outlook for energy prices.
On Monday, Asian markets are trading firmly higher, led by Japan’s Nikkei 225 (+3.18%), while the Hang Seng (+0.86%) and ASX 200 (+0.45%) also post solid gains.
Semiconductor and AI-linked names have surged, with investors rotating aggressively into growth sectors as lower oil prices ease rate concerns and support valuations.
Johannesburg Stock Exchange (JSE) traded lower on Friday and posted a weekly loss, dragged by a substantial decline in Resources (1.74%).
Investors continued to monitor ongoing geopolitical tensions in the Middle East. By market close, the JSE All Share Index was down 0.73%, and the Top 40 was down 0.85%.
Industrials (-0.49%) extended losses for the third consecutive session, while Financials (-0.26%) pared gains from the previous session.
The Nigerian equities market halted its bullish run this week, as the All-Share Index (ASI) declined by 25bps amid profit-taking, indicating a consolidation week after prior gains, with slight index weakness but resilient trading activity underneath.
Nigerian Exchange market capitalisation also dipped slightly, losing 23bps from ₦160.44 to ₦160.08. Top gainers for the week included ABCTRANS (+44.82%), ACADEMY (+29.79%), UPL (+28.00%), INTENEGINS (+22.22%), and LEARNAFRCA (+18.89%).
Meanwhile, major laggards were SOVRENINS (-22.45%), TRANSEXPR (- 18.98%), CAP (-14.85%), BERGER (-12.64%), and RTBRISCOE (-11.18%). Trading activity remained concentrated in large-cap banking names and other fundamentally strong counters.
Sectoral performance was mixed but largely positive. The NSE Banking Index led sectoral gainers, rising 1.11% w/w amid continued demand for tier-1 banking stocks. The NSE Oil & Gas Index also edged higher by 0.07% week on week.
On the downside, the Insurance Index declined 1.77% week on week, while the Industrial Goods and Consumer Goods indices shed 1.24% and 0.84%, respectively, as investors booked profits in selected counters. Bitcoin Tops $77k as Bank of America Increases Crypto Holdings
