Zimbabwe powers ahead in September

Of the African 11 indices we cover, Egypt’s EGX 30 was a top performer in September, recording a 6.7% gain during a month in which the Central Bank of Egypt cut rates by 50 basis points. The month’s performance nudged the index into positive territory with a 2.89% gain year to date.

Ghana’s GSE Composite Index continued its winning streak, ending the month 2.08% to the good, boosted by price appreciations in consumer and financial shares. The index has seen only one negative month in 2013, a 0.21% dip in June, and was up an impressive 69.29% YTD.

Despite a number of negative months, notably in June and August, Nigeria’s All Share is 30.29% in profit for the year, adding 0.93% in September. At the end of the month the Nigerian Stock Exchange moved to a new trading system with better capabilities.

Kenya’s NSE 20 made up for a 1.88% loss in August with a 2.03% gain in September, putting it at 15.97% YTD. The Kenya National Bureau announced that the Kenyan economy grew by an annualised 4.3% in the second quarter, down from 4.4% recorded a year ago.

Morocco’s CFG 25 broke a four-month losing streak with a 3.13% gain for September. However, the index was still 6.15% in the red for the year so far. The Bank of Morocco maintained its key interest rate at 3% when they met on September 24.

Tunisia’s TUNINDEX came under pressure during the month, shedding 3.05% in September and pushing it into a 2.57% decline YTD. Kenya’s budget deficit is expected to widen to more than 7% in 2013, with a reduction in government spending being the first measure to be implemented.

Botswana too, has had a steady year so far, with the Gaborone Index rising 1.17% in September to post a 14.44% gain YTD.

In Mauritius the SEMDEX has posted steady returns, gaining 1.67% in September and up 13.24% since January. The country’s Central Statistics Office cut its calendar-year GDP growth forecast from 3.3% to 3.2% on the back of a slowdown in the financial services and technology sectors as well as an expected contraction in construction.

Although still 0.17% in negative territory for 2013, Namibia’s Overall Index had a strong month with a 5.35% upsurge in September.

After taking a 21.99% beating in August, Zimbabwe’s Industrial’s Index was up 10.12% in September and 31.77% higher YTD. Zimbabwe’s Finance Minister, Patrick Chinamasa, noted that the multi-currency regime currently in operation in Zimbabwe will continue for the foreseeable future in an attempt to ensure financial stability.

The Lusaka All Share in Zambia gained 2.24% to 26 September and was 30.98% higher YTD. On September 30, the Central Bank left the main lending rate unchanged at 9.75% citing the impact of a firmer currency on the inflationary pressures currently being experienced. Copyright. HedgeNews Africa – October 2013.