Many African markets registered strong returns in October as seven exchanges ended the month in the black, helped by stable market conditions and firm fundamentals.
Ghana’s Composite Index gained 6.54% as sentiment improved, with October’s turn-around lifting the year-to-date figure to 15.19%. Zimbabwe followed closely, returning 5.8% after a more than 10% gain in September. Kenya’s All Share (4.42%) and Namibia’s Overall Index (4.27%) also showed firm gains in October trading, while Nigeria’s All Share (1.61%), Botswana’s Gaborone Index (1.44%) and Morocco’s Casablanca Index (1.33%) all rose for the month.
Egypt’s EGX30 lost 2.16% by month-end, reducing the year-to-date figure to 57.24%. The Mauritian SEMDEX once again declined, registering a 2.09% decrease as fundamentals remained weak, most notably in the tourism sector. Tunisia’s TUNINDEX and Zambia’s All Share were also negative, losing 1.35% and 1.04% respectively.
The World Bank reduced its growth forecast for sub-Saharan Africa in October, cutting its previous 5.2% projection for 2012 to 4.8%. According to the World Bank’s Africa’s Pulse report, the continent remains vulnerable to a fragile global economy and a slowdown in China, although high commodity prices and an increase in exports from mineral-producing countries are likely to underpin growth for the rest of the year.
Despite difficulties, investor interest in Africa remains strong with an estimated one-third of the continent’s countries achieving growth in excess of 6% per annum. Other reports suggest that by 2025, 48 of Africa’s countries will reach middle-income status. Copyright. HedgeNews Africa – November 2012.
Market results | ||||
Country | Local Index | Local Index (OCT) | Local Index (YTD) | |
Nigeria | All Share | 1.61% | 27.49% | |
Ghana | GSE Composite Index | 6.54% | 15.19% | |
Kenya | NSE 20 | 4.40% | 29.39% | |
Egypt | EGX 30 | -2.16% | 57.24% | |
Botswana | Gaborone Index | 1.44% | 7.53% | |
Tunisia | TUNINDEX | -1.35% | 3.64% | |
Morocco | CFG 25 | 1.33% | -13.59% | |
Mauritius | SEMDEX | -2.09% | -11.69% | |
Zimbabwe | Industrials Index | 5.80% | 5.90% | |
Zambia | All Share | -1.04% | -11.99% | |
Namibia | Overall Index | 4.27% | 11.30% |
Data source: Bloomberg