Market Intelligence - Equities

During the week of 27 September to 01 October 2010, most African stock markets rose along strengthening commodity prices, a weak U.S. dollar and an optimism bolstered by higher-than-estimated consumer spending in the U.S. The largest gain of 4.2% was recorded by the Ghana’s stock market. Some moderate gains of between 0.9% and 1.9% were registered by the markets in Morocco, Kenya, Uganda, Nigeria, Côte d’Ivoire, Tunisia and South Africa. The markets of Egypt and Mauritius posted losses of 1.3% and 1.1% respectively.

Equity Focus

Ghana: The All Share Index rose by 4.2% over the week, driven by gains of bank stocks. Particularly, the shares of Ecobank Ghana Limited and Ghana Commercial Bank rose substantially 12.5% and 7% respectively, on hopes that banking stocks will post strong results for the third quarter.

Egypt: The CASE 30 Index fell by 1.3% during the week, dragged down by reports of the Algerian government’s imposition of further retrospective taxes on Djezzy, the Egypt-based mobile operator Orascom Telecom’s subsidiary in Algeria. Orascom Telecom is reported to have received notification from the Algerian authorities that Djezzy owes an extra USD 230 million on top of the USD 600 million fines and back taxes it has already paid.

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