Mixed results for African markets in June

African markets ended with mixed results in June trading as six of the eleven analysed markets moved into the black. Economic activity on the African economy remained stable, with an oil discovery in Cote D’Ivoire. Global economic uncertainties continue to blunt confidence in equities as investors look to reduce risk profiles.

Nambia’s All Market Index was the top performer, gaining 2.5%, while Ghana’s Composite Index followed closely, adding 2.2% by month end. Kenya’s All Share Index rose 1.45%, while Botswana’s Gaborone (0.78%), Zambia’s All Share (0.49%) and Egypt’s EGX 30 (0.45%) shared similarly positive results.

On the downside, Morocco’s Casablanca Index fared the worst, losing 2.31%, bringing the year-to-date figure to -9.35%. Nigeria shared a similar fate, losing 2.1%, while a crash in tourist numbers reduced market cap by 1.6%. Tunisia’s TUNINDEX and Zimbabwe’s Industrials Index both dropped 0.99% and 0.05% respectively.

Oil company, Tullow Oil, made a significant deepwater oil discovery off the coast of Cote D’Ivoire, extending westward from oilfield discoveries made in neighbouring Ghana. Company geologists believe that further oil reserves are to be found along the nation’s coast; Tullow Oil will continue drilling for reserves in 2013 as their licence provides rights to 45% of the Ivorian coastline.

The Egyptian market tumbled mid-month as presidential elections were postponed once again, spreading losses through the market. Investor confidence regained momentum within days as it was announced that the Muslim Brotherhood had won the political race. The past few months represent a tumultuous period for the Egyptian market, however it is believed that once political stability is restored, markets will regain momentum.

Kenyan financials were bolstered in June as yields on government bonds fell 0.4% to 12.7%. Furthermore, equities were firm sector-wide, while insurance company Sanlam increased its equitable share in Pan-Africa Insurance to 55%, raising the stock value by 19.7%.

Zimbabwean financials suffered as second-tier banks Genesis and Interfin filed for bankruptcy due to liquidity problems. Other banks, CBZ Bank and ABCH, both suffered losses of 21% and 16.7% respectively.

In other news, Zimbabwean President Robert Mugabe announced that no further licences would be issued to potential mining concerns as nationalist policy clamps down on private ownership. Copyright. HedgeNews Africa – July 2012.


Market results        
Country Local Index Local Index (Jun) Local Index (YTD)
Nigeria All Share -2.11% 4.19%
Ghana GSE Composite Index 2.20% 7.89%
Kenya NSE 20 1.45% 15.56%
Egypt EGX 30 0.47% 29.87%
Botswana Gaborone Index 0.78% 3.83%
Tunisia TUNINDEX -0.99% 5.53%
Morocco CFG 25 -2.31% -9.35%
Mauritius SEMDEX -1.60% -5.95%
Zimbabwe Industrials Index -0.05% -9.52%
Zambia All Share 0.49% -7.03%  
Namibia Overall Index 2.50% 4.86%  

Data source: Bloomberg