Markets

Weekly African Market Commentary

The sentiment was mainly positive on African equity markets this week. Among the 17 markets we cover, 14 advanced while two retreated mildly and one remained flat. The Nigerian Exchange led the pack as equities in Lagos gained 1.83%. Conversely, the Tunis Stock Exchange was the laggard. Tunisian equities shed 0.14% this week, the most on the continent.

West Africa

BRVM – Equities in Abidjan advanced for the sixth week in a row. Overall, the Composite Index edged up another 0.70% WoW to close at 170.51. Market activity declined 12% as XOF 247m (USD 0.44m) worth of shares changed hands every day on average compared to XOF 280m the week before. The market is now up 17.29% year-to-date, and the total market capitalisation amounts to XOF 5,131bn (USD 9.19bn). Societe de Limonaderie et Brasseries d’Afrique SA (SOLIBRA) is the top performer this week. Shares in the beverage company jumped 27.87% and are up 122.50% YTD. The market heavyweight, Sonatel, closed at XOF 14,000 on Friday (-2% WoW). It is now up 3.70% since the start of the year.

NGX – Bullish sentiment prevailed in Lagos this week. The NGX ASI, the benchmark index of the Nigerian exchange, advanced another 1.83% WoW, closing on Friday at 39,522.34. Stocks are now down 1.86% YTD. Activity jumped 54% as NGN 2.5bn (USD 6.12m) worth of shares were traded on average over the week. The total market capitalisation stands at NGN 20.6tn (USD 50.0bn). Honeywell Flour Mills is among the top performers. Shares in the food producer jumped 16.88% and are now up 70.83% YTD. The market heavyweight, Dangote Cement, closed lower at NGN 241.6 on Friday (down 2.62% WoW).

North Africa

BVC – Moroccan equities advanced for the fourth week in a row as the MASI gained 0.75% over the last five days. Market activity declined by 16.6% as MAD 82m (USD 9.1m) worth of shares changed hands every day on average compared to MAD 98m the week before. The total market capitalisation stands at MAD 649.8bn (USD 72.34bn), up 11.83% YTD. Sothema is once again the top performer this week. Shares in the pharmaceutical company rose another 12.37% and are now up 242.16% YTD. The heavyweight, Maroc Telecom, closed at MAD 139.9 on Friday. The stock is down 3.52% YTD.

EGX – Egyptian equities closed higher this week. The EGX 30 gained 1.55% and closed at 10,884.50 points on Wednesday. Compared to the previous week, the average daily turnover remained relatively flat at around EGP 1.8bn (USD 114.8m), and the total market capitalisation amounts to EGP 715.7bn (USD 45.6bn). The benchmark index is now up 0.36% YTD. Acrow Misr is the top performer this week. Shares in the metal scaffolding and frameworks company jumped another 45.9% over the period and are now up 168.55% YTD. The Egyptian heavyweight, CIB, closed at EGP 60.13 (+5.31% WoW) on Wednesday and is now up 1.59% since the start of the year. Fawry, the listed fintech company, closed the week at EGP 18.05 (up 0.28% WoW).

East Africa

NSE – Equities confirmed their rebound in Nairobi. The NSE ASI gained 1.50% WoW to close at 181.18. The average daily turnover soared 64.3% to KES 490m (USD 4.49m), and the total market capitalisation amounts to KES 2,823.4bn (USD 25.83bn). The market is up 19.11% YTD. BK Group is the best performer this week. The shares in the financial institution soared another 11.15% WoW. The counter is now up 86.59% YTD. Safaricom closed at 43 KES (up 2.14% WoW). Shares are up 25.55% so far this year.

Southern Africa

JSE – South African equities rallied as the JSE ASI closed at 69,384.75, up 1.03% WoW. As Business Day highlighted, “after reaching a record closing high on Wednesday, the JSE all share pulled back a little over concern that China’s regulatory crackdown is spilling over into other sectors”. Indeed, on Thursday, China’s government signalled it would push for further regulation over the next five years. The crackdown began late in July with tech stocks targeted, resulting in falls for the likes of Naspers and Prosus. Steinhoff International is among the top performers this week. Shares in the global retailer skyrocketed 20% WoW as it proposed making an additional ZAR 3bn payment for investors who suffered losses due to its accounting scandal of 2017. Shares leapt by a whopping 30% on the news Wednesday and are now up 98.08% YTD. The JSE heavyweight, Prosus, rallied and closed at ZAR 1,309 on Friday (+5.83% WoW). Shares in the tech investor are now down 18.5% YTD.

ZSE – Bullish sentiment prevailed in Harare this week as the ASI advanced another 1.12% WoW. Daily average turnover declined 8% to around ZWL 189m (USD 2.21m) compared to ZWL 205m the week before. The total market capitalisation amounts to ZWL 841.68bn (USD 9.81bn), up 167.82% so far this year.

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