Market Intelligence - Equities

Most African stock bourses recorded gains over the week as the global stock markets and the major commodity markets rallied on strong earnings in the U.S. stock exchanges. The market in South Africa posted the highest gain of about 3.3%. The markets in Nigeria, Ghana, and Tunisia recorded significant gains of between 1.3% and 1.7%, while those of Morocco, Mauritius, and Côte d'Ivoire registered minor gains of less than 1%. In contrast, stock exchanges in Kenya, Uganda, and Egypt closed the week with losses of about 1%, 0.4% and 0.3%, respectively.

Equity Focus

South Africa: The All Shares Index jumped by 3.3% over the week, tracking the U.S. stock markets. Shares of resource companies and banks posted the largest increases, helped by higher metal prices and hopes for strong earnings in the U.S. stock market.

Kenya: The NSE 20 fell by 1% over the week as investors have been increasingly shifting to trading of government and corporate bonds at the Nairobi Stock Exchange as an alternative to stock investments. This trend reflects heightened political risks as the August 4 referendum on constitution approaches.

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