African markets make good start to the year

African markets, ex South Africa, got off to a positive start in the first month of the year with significantly more gainers than losers across the board. Of the 11 bourses we report on, only two ended January in negative territory.

Morocco’s woes continued with the CFG 25 shedding -3.31% in the wake of a dismal performance last year in which the Index ended -15.6% in the red.

Zambia’s Lusaka All Share was also down for the month, by -2.02%, compounding its -10.66% decline in 2012.

Zimbabwe’s Industrials Index hit the ground running in January, surging 17.68% following an increase of 6.65% last year. The World Bank expects Zimbabwe’s economy to expand 6% in 2013 while the African Development Bank forecasts 5.5% growth, but uncertainty abounds in what is expected to be an election year.

Nigeria’s All Share was also a big gainer, posting a 13.44% increase for the month and adding to its stellar 35.45% rise last year.

Kenya’s NSE rose 6.86% in January on the back of a 28.95% advance in 2012. All eyes now are on the presidential election to be held this March. The chaotic events surrounding the country’s last poll in December 2007 are still fresh in investors’ minds, and a peaceful outcome will do much to sustain the positive market momentum.

Political developments are also being closely watched in Egypt where the EGX 30 was the continent’s top performer last year with a 50.24% gain. Investors remained bullish in January pushing the index up a further 2.64% for the month despite clashes in the streets of Cairo and several other cities, which led President Mohamed Morsi to declare a state of emergency in some regions.

Ghana’s GSE Composite Index also posted solid gains for the month, climbing 5.92% and continuing the progress that led to a 23.81% return last year.

Tunisia’s TUNINDEX started the year on a positive note, gaining 3.92% to make up for its -2.59% shortfall in 2012. Political instability remains a concern in the country. Against a backdrop of armed clashes with militant groups, Tunisia extended its January 2011 state of emergency until March 2.

In Mauritius the SEMDEX recorded a 3.96% gain for the month, making up some ground on its -7.95% deficit in 2012.

The Gaborone Index climbed 3.60% in January, building on a 7.73% rise in 2012 while Namibia’s Overall Index inched up 0.75% for the month, having gained 17.36% last year. Copyright. HedgeNews Africa – February 2013.

Data source: Bloomberg