Africa indices struggle to make headway

On the back of a difficult 2015, the first nine months of 2016 have proved difficult to navigate, testing the resolve of investors.

Of the 11 main African indices, ex South Africa, six made gains in September and five lost ground. Only five were in positive territory year to date, and only three – in Mauritius, Morocco and Namibia – were in profit in US dollar terms.

The Nigeria All Share Index increased 2.67% in September to end -1.07% down on the year. However, it’s US dollar loss for 2016 was -37.44%. On September 23, Standard & Poor’s lowered its long-term ratings on Nigeria from B+ to B, saying the economy had “weakened more than we expected, owing to a marked contraction in oil production, a restrictive foreign-exchange regime, and delayed fiscal stimulus”.

Botswana’s Gaborone Index added 2.35% to close the month with a year-to-date deficit of -7.6%. Its US dollar decline was -0.51%.

Namibia’s NSX Overall Index improved by 2.23% and was 18.68% positive on the year.

Kenya’s NSE 20 returned 2.03% in September following a -8.88% decline in August, trimming its year-to-date loss to -19.74%.

The Morocco All Share Index (MASI) gained 1.81% in September and was 12.47% positive year to date, or 14.3% in US dollars.

The SEMDEX in Mauritius gained 0.9% and was 1.06% positive year to date.

The EGX30 ended September -3.39% in deficit to settle at 12.49% ahead year to date. In US dollar terms, the index was flat.

Ghana’s GSE Composite Index retreated -1.69% for the month to end -11.03% in the red for the first nine months.

Tunisia’s TUNINDEX gave back -1.55% to sit 5.94% positive on the year. It, too, was underwater in US dollars, by -2.44%.

The Lusaka All Share Index lost -1.44% and was -24.66% in deficit year to date, or -17.46% behind in US dollar terms.

Zimbabwe’s ZSE Industrial Index slipped -0.3% to end at -13.84% down for the year so far. Copyright. HedgeNews Africa – October 2016.