May 7, 2021/Cowry Asset Report

The global economy expanded strongly in April 2021 – the tenth consecutive expansion – as growth in output and new business orders was sustained. Notably, new business and new export orders indexes expanded to 56.3 points and 52.4 points respectively (from 54.4 points and 50.2 points in March). Input cost index also rose to 64.9 points (from 64.1 points) and was transferred to consumers as output price index rose to 56.9 from 55.9. Expansion in business activity was partly spurred by increased business confidence amid increased rollout of Coronavirus vaccines which allowed for an easing of lockdowns in several countries.

The local bourse rebounded in April amid a number of positive first quarter financial performance announcements by corporates as well as cum-div purchases based on 2020 corporate actions. This was also against the backdrop of the rising yield environment (stop rates of auctioned government securities trended higher) which continued to allure “risk-off” investors.

Click here to read full PDF copy of report