As the first half of the year drew to a close, currencies, stocks and bonds headed south across the globe in the wake of the “Brexit” referendum held on June 23 in which UK citizens voted to leave the European Union.
Of the 11 main African indices, ex South Africa, only three advanced in June – in Nigeria, Ghana and Mauritius – and four were positive year to date in local-currency terms. Only two indices – in Namibia and Morocco – posted a US dollar profit for the first six months of the year.
Although the Nigeria All Share Index was up by 6.96% for June, and 3.34% in profit year to date, this was offset by a 30% fall in the value of the naira against the US dollar, following the June 20 decision by Nigeria’s central bank (CBN) to remove a de facto 16-month peg of around 197 to the dollar. By month’s end, the naira was trading at 282 to the dollar. Accordingly, by the end of June the US dollar performance of the Nigeria All Share Index was -27.76% in the red year to date.
Ghana’s GSE Composite Index added 1.66% to end the month -10.4% in deficit for the year, or -13.53% in US dollar terms. The local currency, the cedi, weakened 3% in June after slipping 0.7% in May.
The SEMDEX in Mauritius gained 0.34% in June to close -3.24% lower year to date (-2.29% in US dollars).
Namibia’s NSX Overall Index slipped -0.83% to finish 13.12% up for the year.
Botswana’s Gaborone Index retreated -1.08% to end -4.91% down year to date (-0.95% in US dollars).
The Morocco All Share Index (MASI) retreated -2.77% in June and was 6.58% positive year to date with a gain of 8.05% in US dollars.
Zimbabwe’s ZSE Industrial Index saw a -3.41% decline in June, extending its year-to-date deficit to -11.91%.
Tunisia’s TUNINDEX gave back -3.62% in June, leaving it 4.91% in positive territory on the year.
The Lusaka All Share recorded a -4.25% loss in June and was -17.11% in deficit for the year, or -6.4% in US dollar terms.
Kenya’s NSE 20 retreated -4.89% to settle -9.9% in deficit year to date.
Egypt’s EGX 30 plunged -7.23% in June, taking its year-to-date performance into negative territory at -0.91%, or -12.72% in US dollar terms. Copyright. HedgeNews Africa – July 2016.