Dovish Fed Drives Equities Higher

Domestic equity markets posted a strong performance this week with each of the main indices recording gains. A series of statements from Federal Reserve Chairman Jerome Powell, which the market understood to be dovish, propelled stocks higher on Thursday. It is likely not all investors were convinced by the recent bout of equity strength and remain on the sidelines until the conclusion of the G20 summit in Buenos Aires. Still, the three largest broad index tracking exchange traded funds (ETF) saw substantial inflows and the S&P 500 notched its best weekly performance since December 2011.

Among the biggest risers on the S&P 500 on Friday November 30 was American Airlines Group Inc. ($AAL), popping some 4.53% to a price of $40.16 a share with some 9.96 million shares trading hands.

Among the biggest risers on the S&P 500 on Friday November 30 was American Water Works Company Inc. ($AWK), popping some 3.17% to a price of $95.41 a share with some 2.45 million shares trading hands.

Among the biggest risers on the S&P 500 on Friday November 30 was Bristol-Myers Squibb Company ($BMY), popping some 3.16% to a price of $53.46 a share with some 13.39 million shares trading hands.

Among the biggest risers on the S&P 500 on Friday November 30 was Caterpillar Inc. ($CAT), popping some 4.18% to a price of $135.67 a share with some 8.34 million shares trading hands.

The Nigerian equities market closed lower yesterday with a decline of 1.33 per cent to extends losing streak to five consecutive trading days.

Among the S&P 500’s biggest fallers on Thursday November 29 was AutoNation Inc. (AN). The stock experienced a 2.98% decline to $37.15 with 604,306 shares changing hands.

There is a narrative that credit is leading the way. It often sounds smart to talk about credit or corporate bonds as leading equities, but it just isn’t the case right now. Equities have done a good job dragging themselves down, and if anything, pressure on stocks translated into weakness for corporate debt – rather than the other way around.

ChongKunDang Pharmaceutical will post record earnings in the fourth quarter and join the1 trillion won (US$891.19 million) league,” said Cape Investment and Securities on Nov. 30 maintaining a “buy” recommendation. The securities firm, however, lowered the target price to 150,000 won from 180,000 won reflecting discount on top pharmaceutical companies’ profit targets.

GC’s blood products and vaccines will propel its fourth-quarter earnings, said Cape Investment and Securities on Nov. 29 maintaining a “buy” recommendation.