Africa mid-year report

The green shoots of recovery have begun to take root across much of Africa, albeit at a moderate pace. Annual growth in sub-Saharan Africa rose to 2.1% in Q1 2017 compared with 1.3% in Q4 2016, according to preliminary estimates.

The MSCI Frontier Markets Africa Index (USD) – which predominantly tracks markets in Nigeria, Morocco, Kenya and Mauritius – advanced 5.94% in June to settle 15.48% ahead year to date – a significant turnaround from three straight years of steep declines from 2014 to 2016.

At the half-year mark, of the 11 indices we report on in Africa, ex South Africa, only two – in Botswana and Namibia – were in negative territory for the year so far.

Zimbabwe’s ZSE Industrial Index posted the biggest gain in June, advancing by 20.71%. The index is also the best performer year to date with a gain of 35.59%.

The Nigeria All Share Index surged 12.27% for the month on the back of a 14.48% spike in May, lifting its year-to-date gain to 23.23%.

Tunisia’s TUNINDEX improved 5.69%, extending its year-to-date gain to 9.73%.

Kenya’s NSE 20 returned 4.83% in June, increasing its year-to-date gain to 13.21%.

The Morocco All Share Index (MASI) moved 3.19% into the black year-to-date following a 3.78% rise in June.

Ghana’s GSE Composite Index progressed 2.34% to settle 16.31% ahead year to date with no negative months recorded in the first half.

The SEMDEX in Mauritius added 2.3% for the month to boost its year-to-date gain to 17.39%. The index has risen steadily over the past year with only one negative month recorded – in October 2016.

The Lusaka All Share Index advanced 0.87%, raising its year-to-date return to 13.43%.

Egypt’s EGX30 Index edged up 0.42%, lifting its year-to-date profit to 8.51%.

Namibia’s NSX Overall Index recorded the steepest decline in June, retreating -3.6% on the back of a -2.96% loss in May to settle -5.15% in the red for the year so far.

Botswana’s Gaborone Index gave back -1.12% to end the month -1.66% in arrears year to date. Copyright. HedgeNews Africa – July 2017.