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.
|Country||Local Index||Local Index (OCT)||Local Index (YTD)|
|Ghana||GSE Composite Index||6.54%||15.19%|
Data source: Bloomberg