Zimbabwe leads Africa’s charge in September

African markets had a strong month in September with eight of the eleven main markets ending in the black. Performances were strong all around with significant gains seen in several markets. This follows trends seen in larger markets with the Dow Jones Industrials Index extending monthly gains to 2.65%.

Zimbabwe’s Industrials Index led African markets, rising 10.38%. Following close behind were Nigeria’s All Share Index and Egypt’s EGX, returning 9.51% and 9.18% respectively. The Egyptian EGX is currently 60.71% higher on a year-to-date basis, while Nigeria’s All Share is sitting comfortably at 25.47% higher to the end of September, with confidence in both markets appearing to be on the rise. Kenya’s All Share rose 2.75% in September trading while Ghana’s Composite Index (2.12%), Namibia’s Overall Index (1.54%), Botswana’s Gaborone Index (1.07%) and the Mauritian SEMDEX (0.99%) also contributed to positive returns.

Tunisia shaped badly in September trading, losing 4.9% through the month. Also losing ground were Morocco’s Casablanca Index (-4.7%) and Zambia’s All Share, which lost 0.65%.

Botswana’s stock exchange was in the news during September with the launch of an automated trading system, which came on line on August 24. The new live trading system replaces the old outcry trading method with the aim of making the exchange more transparent and efficient. The exchange has been using a central securities depository (CSD) since 2008 and this has also been upgraded.

The Nigerian Stock Exchange (NSE) launched its market-making programme during the month. This will be a hybrid process, with market makers offering two-way (buy-sell) price quotes in selected securities and a continuation of the current process in which licensed broker/dealers of the NSE submit orders.

The launch follows drawing up rules and operational guidelines. Role-players such as market makers, securities lenders, short sellers, settlement banks, pension fund administrators, insurance companies and listed companies have been trained.

A partnership between the innovative Stock Exchange of Mauritius and social enterprise Nexii is progressing towards setting up the Impact Exchange (iX) board. This will enable businesses that create a social impact to list debt and equity securities; impact investment funds will also be permitted to list. The exchange notes that six companies have gone through the iX board listing process and the board expects to start trading in the third quarter of 2013.

Zambia issued its first international bond in mid-September, at a time when African debt instruments face increasing demand from international investors. The issue consisted of a US$750 million 10-year bond priced at a final coupon of 5.625%. Although demand is high, Fitch has rated the bond B+, making it four levels below investment grade. Copyright. HedgeNews Africa – October 2012.

Market results        
Country Local Index Local Index (SEP) Local Index (YTD)
Nigeria All Share 9.51% 25.47%
Ghana GSE Composite Index 2.12% 8.12%
Kenya NSE 20 2.74% 23.93%
Egypt EGX 30 9.18% 60.71%
Botswana Gaborone Index 1.06% 6.00%
Tunisia TUNINDEX -4.90% 5.06%
Morocco CFG 25 -4.70% -14.73%
Mauritius SEMDEX 0.99% -9.80%
Zimbabwe Industrials Index 10.38% 0.09%
Zambia All Share -0.65% -11.07%  
Namibia Overall Index 1.54% 6.74%  

Data source: Bloomberg