Nigerian equities rebound as world stocks edge lower on uncertainty over US tax reforms

Nigerian equities market closed Friday on a positive note, as bourse’s benchmark index appreciated by 0.19 percent to close at 37,120.28 basis points as against 0.24 percent depreciation recorded previously. This is just as world stocks traded lower amid concerns over US tax reforms delay.

Friday performance at the Nigerian bourse brought market year-to-date gain to 38.12 percent.

Market breadth closed positive as CADBURY led 19 gainers as against 18 losers topped by CHAMPION at the end of today’s session- an improved performance when compared with previous outlook.

However, market turnover closes negative as volume moved down by -0.27 percent as against -9.16 percent downtick recorded in the previous session. ZENITHBANK, FBNH and FIDELITYBK were the most active to boost market turnover. ZENITHBANK and GUINNESS topped market value list.

INTBREW leads the list of active stocks that recorded impressive volume spike at the end of today’s session.

At the global satage, world stocks edged lower Friday on signs that U.S. tax reforms could be delayed after Senate Republicans unveiled a plan that differed significantly from the House of Representatives’ version.

MSCI’s global stock index, which tracks shares in 47 countries, declined 0.1 percent, slipping further from a record level.

On Thursday the global index failed by one day to post its longest winning streak since 2003 as it fell 0.4 percent following 10 days straight of gains.

The pan-European STOXX 600 index was on track for its worst week in three months, however, down 0.3 percent on Friday and falling for a fourth day in row.

The MSCI world index has gained more than 18 percent so far this year and some investors believe a pullback is due.

“I think there’s a feeling out there that there’s a long awaited correction, and no one wants to be caught by surprise,” Emmanuel Cau, global equity strategist at JP Morgan, said.