Global We're Gone, Local We Go!
A brief of what happened last week and how geopolitics could change the earnings of companies in global markets.
Hey Hisa fan,
The past two weeks have been a rollercoaster with the majority of S&P 500 index companies releasing their financials and dynamics of global economies taking centre stage. From Amazon, Virgin Atlantic, Tesla, Airbnb, just to mention a few and more that we have covered during that period at Hisa.
Investing during the next few weeks across global markets may turn gloomy this week as there will be growing concerns over the latest development in geopolitics with the Taliban overthrowing and subsequently taking over the Afghani government.
Market analysts will be looking at Major military support companies with Lockheed Martin topping the chart.
Outside Kabul, we go back to the much greater reality of markets.
Last week, the S&P 500 index was the major watch for investors, the top global markets index continued to gain for a second straight week, adding 31.48 basis points to end the week at 4468.00 basis points. The major push to the S&P 500 was the growth in value and tech stocks, which pushed the index together with the Nasdaq Composite Index.
The growing worry from investors on global markets has been the increasing concerns about the growing number of coronavirus infections in China and the United States. The Delta variant has proved to be a challenge for most of these economies with countries staring at the possibility of returning to lockdowns, which could evidently hamper growth across markets.
Let’s get local
In the coming week, we expect companies to release their financial reports for the 1H2021 with Stanbic Holdings and Limuru Tea taking the lead and releasing their 1H21 results last week.
CIC Group Plcroared back to profitability in its 1H2021 posting a profit after tax of Kes 259.5 million from an after-tax loss of Kes of 335.5 million in 1H2020 a growth the company attributed to higher gross written premium and investment income.
Over the week, we are going to be watching on listed companies on the Exchange releasing their results with a major focus on KCB Group Plc, Equity Holdings, Co-operative Bank, among other key banks in the sector. Most investors will be watching Equity Group, with a stable outlook for the possibilities of dividend payment by the company.
On the performance of the indices, the benchmark all share index of the Nairobi Securities Exchange (NASI) was on the gain, adding 1.5% week-on-week to close at 181.18 points.
What Cowries Are we collecting this week?
The Financials - We go local, we will be looking at companies releasing their financials, those that will pay dividends, those that will make profits and those that will plunge into losses.
Commodities - Gold has been on the declining bit these past two weeks, the flat action raises concerns over the yellow metal and we will be watching on that.
Our focus will also be on Oil, with the growing concerns of uncertainties in the Middle East after yesterday’s take over by the Taliban, we seek to figure if this will affect the supply of oil in the Middle East and imminently affect prices.
U.S Markets - The Tech companies and the unbeatable corporate earnings have sustained the markets at all-time highs for a second week running. Our eyes now turn to post S&P index companies release, what will be the next factor that brings SPX and Nasdaq down to levels where investors can comfortably say the market is oversold?
How about you? What are your cowries for the week?
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