Markets in positive response to Biden, but performance mixed across Asia, Africa, BRICS

PERFOR MANCE IN THE DEVELOPED markets was bullish with five of seven indices advancing week on week, amidst high expectation on the impact the trade strategy, which the Biden administration will employ with respect to the existing Sino-U.S. trade tension.

The S&P 500 and NASDAQ indices rose 1.9 per cent and 3.8 per cent from the past week respectively in the US. In the UK, the FTSE All-Share and France CAC 40 indices declined by 0.9 per cent and 1.5 per cent from the previous week due to disappointing economic data, while Germany’s XETRA DAX index advanced 2.6 per cent week on week. Also, Hong Kong’s Hang Seng index rose 3.1 per cent from last week while Japan’s Nikkei 225 index closed the week higher by 0.4 per cent from the prior week.

The performance across the BRICS markets was mixed with the indices closing lower from the past week’s close. China’s Shanghai Composite index advanced 1.1 per cent while South Africa’s FTSE/JSE All-Share index appreciated 0.7 per cent despite weak macro-economic data. On the other hand, Russia’s RTS lost the most, down 3.4 per cent from the past week due to concerns over western sanctions. Similarly, Brazil’s Ibovespa and India’s BSE declined 2.8 per cent and 0.3 per cent week on week respectively.

In Africa, the performance was mixed with 3 of 6 indices advancing from the previous week. Egypt’s EGX 30 and Ghana’s GSE Composite appreciated 1.8 per cent and 1.7 per cent from the previous week respectively. Similarly, Morrocco’s Casablanca MASI gained 0.4 per cent week on week.

On the flipside, Kenya’s NSE 20 led the losers with a 1.7 per cent decline. Also, the Nigerian All-Share index lost 0.4 per cent as investors booked gains from the previous week, while Mauritius’ SEMDEX indices lost 0.3 per cent from the previous week.

Across the Asian and Middle East markets, the performance was also mixed as UAE’s ADX General and Turkey’s BIST 100 indices gained 6.5 per cent and 1.2 per cent from the past week’s trade respectively. Conversely, Qatar’s DSM 220 and Thailand’s Set declined 1.6 per cent and 1.4 per cent week on week respectively. Lastly, Saudi Arabia’s Tadawul All Share index lost 0.2 per cent from the previous week.