Reflecting turmoil in global markets, several of the main African indices lost ground in January, with bourses in Nigeria, Egypt and Zimbabwe particularly hard hit.
Nigeria’s All Share Index plummeted -16.5% during the month, following a -17.36% rout in 2015 and a -16.14% pullback the year before. The index has almost halved in value since posting a 47.19% gain in 2013 and reaching a peak in June 2014. The naira meanwhile has also declined significantly against the US dollar.
“For an economy dependent on crude oil for 70% of government revenues, the 12-year low in oil prices, the downward revisions to the global outlook, and the re-ordering of the global economy are ominous signs,” Nigeria’s Finance Minister Kemi Adeosun was quoted as saying.
Also impacted by declines in global markets, particularly in the Middle East, Egypt’s EGX 30 dived -14.55% in January following a -21.52% loss in 2015.
Zimbabwe’s ZSE Industrial Index saw a sharp drop of -10.28% in January following on from a -29.31% shortfall last year.
Kenya’s NSE 20 retreated -6.62% on the back of a -20.97% deficit in 2015.
The Lusaka All Share gave back -3.16% in January, or -5.26% in US dollar terms, having ended 2015 -6.73% in arrears.
Namibia’s Overall Index surrendered -1.72% in January, having declined -21.18% in 2015.
Botswana’s Gaborone Index was down -1.53% for the month following an 11.58% increase in 2015.
Of the gainers, Tunisia’s TUNINDEX recorded the best performance for the month, rising 7.41%, after posting a loss of -0.94% in 2015.
The SEMDEX in Mauritius also started the year on a positive note with a gain of 1.76%. The index was -12.67% in the red last year.
Morocco’s CFG 25 gained 0.51% in January on the back of a -6.1% fall in 2015.
Ghana’s GSE Composite Index rose 0.46% in January after losing -11.77% in 2015. Copyright. HedgeNews Africa – February 2016.
