Wednesday, September 8, 2010

Market Intelligence - Equities

During the week of 30 August–3 September 2010, global equity markets advanced as fears over a double-dip recession eased. African stock markets however showed mixed performance, with the highest gains of 4.5% and 2% recorded in the stock markets of South Africa and Tunisia, respectively. Moderate gains of 0.8% and 0.5% were recorded in the markets of Egypt and Côte d'Ivoire, respectively. The markets in Mauritius, Kenya and Ghana, posted substantial losses of 1.9%, 1.6% and 1.5%, respectively. The overall stock prices of Nigeria were virtually unchanged.

Equity Focus

Mauritius: The SEMDEX Index declined by 1.9% over the week. In particular, the prices of tourism stocks sharply fell as investors speculated over weak upcoming earnings results due to the adverse impacts of the Euro-zone crisis.

Kenya: The NSE 20 Index fell by 1.6% during the week due to profit-taking, after rising to a near 2-year high in the first week of August. The market was also weighed down by a fall in the share price of Safaricom, Kenya's largest telecoms firm, caused by the stiff competition in the telecom sector.

South Africa: The JALSH Index rose by 4.5% over the week, recording its first weekly gain after 5 consecutive weeks of losses. The market tracked the movements of global equities, extending gains after the U.S. economic data, including a stronger than expected labour market report, bolstered optimism in the U.S. and global economies.

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