African markets generally positive in October

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