Few African markets in the black in November

The MSCI EFM Africa ex South Africa Index plummeted 5.1% in November 2012, dragged down by a 15.59% decline in Egypt’s EGX 30, triggered by Egyptian President Mohamed Morsi issuing a decree that effectively placed his executive powers above those of the Egyptian high court.

Morsi’s November 22 announcement resulted in mass political protests on the streets around Cairo’s Tahrir Square and the market free-fall even prompted the Egyptian Stock Exchange to halt trading for 30 minutes on Sunday 25th.

It was Egypt’s worst stock-market fall since the February 2011 uprising that toppled former president Hosni Mubarak. (Morsi subsequently rescinded the decree on Sunday, December 9, sparking a surge to the upside.)

Egypt meanwhile reached a preliminary agreement with the International Monetary Fund on November 20 for a US$4.8 billion loan, seen as vital for shoring up the country’s finances.

Despite nose-diving in November, the EGX 30 remained 32.72% in the black year to date, the best performer on the continent.

The next best performers year to date are the Nigeria All Share and Kenya’s NSE 20 – up 27.8% and 27.41% respectively. The Nigeria All Share was up 0.24% for the month while Kenya’s NSE 20 shed 1.54%.

The Nigerian government began book building for its NGN80 billion (approximately US$500 million) bond issue for an urban rail line in Lagos. Coupon guidance for the offer was given at 12.75% to 14% with order requests closing on November 19.

Ghana has also performed well in 2012 with the GSE Composite Index up 16.97% so far, having added 1.54% in November.

Botswana’s Gabarone Index rose 0.98% for the month bringing its year-to-date performance to 7.53%.

The next big loser after Egypt was Tunisia’s TUNINDEX, down 4.54% for November, mainly on the back of losses in the building and banking sectors. The TUNINDEX is down 1.06% year to date.

While Morocco’s CFG 25 index grew 2.02% during the month, year-to-date losses stand at -11.85%.

Markets in Mauritius and Zambia have also suffered double-digit losses so far this year with the SEMDEX down 11.69% (up 0.87% in November) and the Lusaka All Share 12% in the red, following a 1.63% fall in November.

Zimbabwe’s Industrials index declined 2.79% in November (up 5.9% year to date) with the country’s banking sector shedding more than 7% in the last week of the month after Finance Minister Tendai Biti announced measures to control charges and interest rates – moves that could severely erode income for financial institutions operating in the country. Copyright. HedgeNews Africa – December 2012.


Market results        
Country Local Index Local Index (NOV) Local Index (YTD)
Nigeria All Share 0.24% 27.8%
Ghana GSE Composite Index 1.54% 16.97%
Kenya NSE 20 -1.54% 27.41%
Egypt EGX 30 -15.59% 32.72%
Botswana Gaborone Index 0.98% 7.53%
Tunisia TUNINDEX -4.54% -1.06%
Morocco CFG 25 2.02% -11.85%
Mauritius SEMDEX 0.87% -11.69%
Zimbabwe Industrials Index -2.79% 5.9%
Zambia All Share -1.63% -12.00%  
Namibia Overall Index -1.41% 9.74%  

Data source: Bloomberg