Wednesday, October 13, 2010

Market Intelligence - Equities

During the week of 4 – 8 October 2010, African stock markets showed mixed performance despite the rallies in the global stock markets, driven by hopes that the U.S. Federal Reserve would take more steps to boost the economy. The stock markets in Egypt led the gainers, recording a 3.7% weekly gain, followed by those of Nigeria and Mauritius, which registered gains of 3.1% and 2.7%, respectively. Moderate gains of between 0.3% and 1.4% were posted by the stock markets of Morocco, South Africa, and Uganda. In contrast, four African stock markets declined, decoupling from the global stock markets, with the markets in Ghana and Tunisia recording substantial losses of 3.7% and 2.7%, respectively and those of Côte d'Ivoire and Kenya registering moderate losses of 0.4% and 0.3%, respectively.

Equity Focus

Nigeria: The All Share Index rose by 3.1% over the week. The price increases were driven by oil firms such as Conoil Nigeria Plc and Okomu Oil Plc, while the increases in transactions volume were led by the banking sub-sector, including the shares of GTB, Diamond Bank, First Bank, and Zenith.

South Africa: The Johannesburg Stock Exchange edged up by 1.3% over the week, propelled by the stocks of precious metal mining companies. The prices of precious metals have risen partly in response to the increased likelihood of quantitative easing from the U.S. Federal Reserve.

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