Generally, in the week ended June 22, 2018, stock markets across the African continent were largely down with only four markets closing positively while twelve were down and one ended the week flat among the seventeen markets covered.
GAINERS FOR THE WEEK
WoW, Tunisia’ Tunindex, recording a growth of 2.79% led in Africa. Year to Date, it has been a growth of 27.05% for the North African country’ stock market. Notably, country’ central bank has in the last three quarters increased rates which currently stand at 5.75%. Rates, according to the nation’s central bank were increased as groundwork for solid economic growth going forward. The impact of Marouane el Abassi, the nation’s new central bank governor is yet to be fully felt even as the government announced cuts on subsidies and consequent price hikes early in 2018 though with measures to support low income households. Subsequent inflations seem to have supported performances of the country’s market so far so good this year.
Egyptian’ EGX 30 index was the second best in performance in Africa last week. The index recorded a growth of 0.77% to close the week at 7,981.24 Friday. For the year 2018, the index had recorded a growth of 8.83% so far.
Notably, the country’s central bank after two straight rates cut chose to retain rates in its last meeting in May 17, 2018 in the attempts at keeping inflation under. It should be recalled that the North African market so far in 2018 had approached the international bond market for a $4bn bond while also AfDP was reported to have approved the sum of $500million budget support loan for the country. These so far in the year had helped sustained the country’s economy.
LOSERS FOR THE WEEK
Zimbabwe’s ZSE Industrial, closing at 362.49 Friday, after losing 8.18% for the week was the worst performer in Africa for the week under review. The South African country’ market however has so far in 2018 recorded a growth of 11.89%. It should be recalled that Zimbabwe’ market was attractive in 2017 until the erstwhile President Robert Mugabe was ousted by a near military coup. Despite the turmoil, the Zimbabwean’s market was still one of the best in returns in 2017. The first quarter of 2018 was marginally down 1.21% before a gradual recovery which currently places the market at 11.89% Year-to-Date performance.