African Equity Market August 2015 Report: Most Exchanges sag for both local and foreign investors, Egypt bled most …

Lagos, Nigeria (Capital Markets in Africa):- African stock markets performance measured by country equity benchmark index return ended in negative for the month of August, with all indices closed in red zone for both local currency and dollar return basis. Still on local basis return, the August average return of -2.9 percent was recorded across eighteen African equity indices and August monthly returns ranges from  -11.5 percent recorded by the Egyptian Exchange equity markets  (measured by EGX 30 index) to -0.2 percent registered by the least liquid Swaziland Stock Exchange equity (measured by SSE All Share). Whereas Zimbabwe equity markets (measured by ZSE Industrial Index) sagged by 6.8 percent and Namibia Stock Exchange Overall Share index tumbled by 4.6 percent to emerge as second and third worst August returns respectively. Moroccan equity markets and South African equity both went down by 4.0 percent.

Looking at the performance in 2015 (that is year-to-date performance), the market strength ended negative with 7 positive returns and 11 negative returns.  The average returns across eighteen Africa equity indices was recorded at -2.4 percent compared to 0.5 percent recorded in month of July. Cote d’Ivoire equity market (measured by BRVM Composite All Share) topped the positive returns’ league table after surging by almost 14.80 percent (against 16.71 percent) and nearly gained XOF 1,082 billion (US$1.8 billion) in market capitalization over the same period. On the contrary, the Egyptian Exchange equity markets emerged as the worst after plummeted by 18.8 percent and shed off EGP 55.3 billion (US$7.1 billion) in market capitalization on year-to-date basis.

From the foreign investor viewpoint, African equity shed off an average of -5.7 percent (on a 1 month return basis) and -14.0 percent on a year-to-date basis. This is attributed to the appreciation of US Dollar against all the African currencies under review, for instance since the start of 2015 Zambia Kwacha and Ugandan Shilling depreciated by 39.1 percent and 32.5 percent respectively against the US Dollar. The African equity benchmark indices, FTSE ASEA Pan Africa Index and the S&P All Africa Index for instance, sagged by 5.2 percent (-17.6 percent) and 8.7 percent (-13.2 percent) respectively in the month of August (year-to-date basis).

Note:

• The S&P All Africa index is a comprehensive benchmark for the African market, covering companies listed in 13 countries: Botswana, Côte d’Ivoire, Egypt, Ghana, Kenya, Mauritius, Morocco, Namibia, Nigeria, South Africa, Tunisia, Zambia and Zimbabwe plus companies listed in developed markets that derive the majority of their revenue from the African continent.
• The FTSE ASEA Pan Africa Index Series represents the performance of eligible securities listed on ASEA (African Securities Exchanges Association) member exchanges. It is a free float market capitalisation weighted index series constructed from securities domiciled in the almost eighteen countries.
• BRVM Bourse is the regional stock exchange for eight West Africa countries: Benin, Burkina Faso, Guinea Bissau, Cote d’Ivoire, Mali, Niger, Senegal and Togo.