For the week of 2-6 May 2011, major global stock markets declined as market participants worried that the global economic recovery is slow following the release of weaker US economic performances than expected. In addition, a news report of an emergency EU meeting, which might discuss a Greek exit from the Euro zone and a debt restructuring, led to a broad-based retreat from risky assets. The US Dow Jones Industrial index incurred a loss of 1.3% while S&P 500 and NASDAQ Composite posted losses of 1.7% and 1.6%, respectively. Most European shares also edged lower with the largest fall of Greek stock index by 4.5%.
During the reference period, African stock markets showed a mixed performance (Table 1). The stock market in Ghana registered the highest gain of 4.3% among ten reviewed ones. On the other hand, South Africa’s stock index recorded the largest loss of 2.9%.
Equity Focus
Ghana: Ghana’s All Share Index climbed by 4.3%, its highest weekly change so far in the year. The rise in the index was driven by positive 1Q 2011 earnings reports of major companies, including Ghana Oil Company. Ghanaian companies are seeking ways to benefit from the nascent energy industry. Ghana Oil Company, the nation’s second biggest operator of gas station, announced the plan, in March, to expand its fuel operation for shipping as the country begins to export crude oil. During the week, the company announced that its EPS (earnings per share) registered 10.7% year-onyear increase to GHS 0.012 (US $0.0082). The stock price of the company ended the week with 3.2% gain.
South Africa: Over the week, the resourceheavy domestic bourse was trading in negative territory as commodity prices plunged amid concern over slow global economic growth. For instance, Anglo American Plc, a diversified mining company that makes up 10 percent of the benchmark stock index, slipped 3.3%, reflecting a drop in copper prices.
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During the reference period, African stock markets showed a mixed performance (Table 1). The stock market in Ghana registered the highest gain of 4.3% among ten reviewed ones. On the other hand, South Africa’s stock index recorded the largest loss of 2.9%.
Equity Focus
Ghana: Ghana’s All Share Index climbed by 4.3%, its highest weekly change so far in the year. The rise in the index was driven by positive 1Q 2011 earnings reports of major companies, including Ghana Oil Company. Ghanaian companies are seeking ways to benefit from the nascent energy industry. Ghana Oil Company, the nation’s second biggest operator of gas station, announced the plan, in March, to expand its fuel operation for shipping as the country begins to export crude oil. During the week, the company announced that its EPS (earnings per share) registered 10.7% year-onyear increase to GHS 0.012 (US $0.0082). The stock price of the company ended the week with 3.2% gain.
South Africa: Over the week, the resourceheavy domestic bourse was trading in negative territory as commodity prices plunged amid concern over slow global economic growth. For instance, Anglo American Plc, a diversified mining company that makes up 10 percent of the benchmark stock index, slipped 3.3%, reflecting a drop in copper prices.
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