Friday, May 21, 2010

Market Intelligence - Equities

Stock Markets

Overall, African stock markets recorded gains during the week of May 10 – 14, responding positively to EU’s €750 billion stability fund. The stock markets in South Africa and Ghana posted gains of more than 3%, while those in Côte d'Ivoire, Kenya, Morocco, Nigeria and Tunisia registered modest gains of up to 1.3%. In contrast, the stock markets in Egypt, Mauritius and Uganda recorded losses by up to 2.8%, which is mainly a carryover from the previous week. The longer-term impact of the Greek crisis still remains to be seen. In particular, it may lead to investors’ re-pricing of risks of African emerging and frontier markets with public debt challenges (e.g., Ghana) and hence increased cost of financing.

Equity Focus

South Africa: The All Share Index increased by 3.1% over the week, partly offsetting the previous week’s loss of 7.4%, as investors’ confidence was restored by the massive emergency package to stabilise the Euro Zone debt woes.

The stock market continued its downward trend, but at a slower pace. The CASE 30 Index fell by 2.8% during the week after a drop of 4.5% in the previous week as investors’ concerns still lingered over the Greek debt crisis and its potential negative impact on Egypt, despite the EU’s rescue plan. Click here for this week's Market Intelligence Table.