Thursday, September 16, 2010

Market Intelligence - Equities

During the week of 6 – 10 September 2010, global equity markets advanced with growing optimism about global economic recovery. The upward trend of global stock markets continued after the meeting of the Basel Committee on Banking Supervision, led by gains of bank stocks on relief that the Basel III bank capital rules were not as tough as feared.

As for African stock markets, the week closed with a mixed performance. The Ghana stock market registered the highest gain (1.5%), followed by those of Kenya (1.1%) and South Africa (0.5%). The largest loss was in Nigeria (-1.8%), while Uganda and Côte d'Ivoire posted moderate downturns of 0.7% each. Minor losses of less than 0.5% were recorded in Egypt, Mauritius, Morocco and Tunisia.

Equity Focus

Ghana: The All Share Index rose by 1.5%, offsetting its loss in the previous week. The stock of Accra Brewery led the rally, recording a gain of 20%, boosted by news that its majority shareholder, Overseas Brewery Limited would buy the stake of the minority shareholders for a higher price than the prevailing market price in order to re-capitalize the company.

Nigeria: The All Share Index fell by 1.8% during the week, recording its third consecutive weekly loss. This was led by losses of bank stocks due to persistent concerns over bank profits under the Central Bank’s tight regulation on lending for buying stocks. The largest losses were recorded by Union Bank Nigeria (-12%), Access Bank (-9.6%) and Oceanic Bank Int. (-8.4%). The best performer of the week was Ashaka Cement (10.5%), which recently announced higher than expected earnings for the first half of 2010.

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