Global Market Overview: Global Equities Sustains Bullish Trend
In August 2024, the global equities market extended its winning streak for another month, with the MSCI World Index rising by 4.01% month-on-month (MoM), which was mirrored in other indices. The only exceptions were China’s SHCOMP and Japan’s Nikkei 225 indices, which declined by 0.97% MoM and 1.16% MoM respectively.
Domestic Market: Another Loss for the Books
Despite a 239bps MoM decline in average fixed income yields to 20.08% in August 2024 and announcements of dividend payments, the NGX All Share Index (NGX ASI) lost 1.22% MoM to print at 96,580.01 points (vs. July 2024: -2.28% MoM to 97,774.22 points), bringing the Nigerian equities market to a bearish close for the second consecutive month. Consequently, the market’s year-to-date return (YtD) declined further to 29.16% (vs. 30.76% YtD in July 2024).
Looking ahead, we expect sustained selloffs in the market, as investors continue to take profit to lock in gains. Furthermore, the outcome of the September 2024 MPC meeting would play a pivotal role in determining the performance of the market. Nonetheless, we believe that the positive sentiment in the Oil and Gas sector would continue into September and serve as a cushion against potential losses brought on by profit-taking.
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