Kenya, Nigeria lead Top 10 Performing African Exchanges

Proshare

Thursday, October 24, 2013 10:05 AM / The Analyst

 

Africa Stock markets remain one of the fastest growing emerging markets around the world despite the fact that investors sometimes flee emerging/frontier markets as they seek safer havens and higher returns in the developed economies/markets.

 

Many of the emerging markets countries came out of the financial crisis mostly unharmed given the lower levels of indebtedness relative to developed markets/economies. As such, a good deal of capital has found its way to the emerging markets; and their stocks continue to advance after the US Federal Reserve decided to maintain the pace of its monetary stimulus.

 

Ten Best Performing African Stock Markets  

 

1.    Kenya Stock Exchange (YTD): 38.13%

 

The Kenyan Exchange emerged as the best performing market based on YTD figure as it currently records +38.13%. Key factor responsible for the positive outlook are the return of foreigners to the Nairobi Stock Exchange after the Fed postponed its tapering decision. Source: Contrarian Investing Kenya

 

2.  Nigerian Stock Exchange (YTD): 33.08%

 

Nigerian Stock Market ranked second among its African peers as it has so far recorded +33.08% YTD gains. This impressive performance represents a further consolidation on the positive outlook witnessed by the market as it closed the previous year with +35.45% gain. The key initiative and reforms being carried out by the Exchange represents one of the key factors contributing to the growth. Source: Proshare

 

3.  Uganda Securities Exchange (YTD): 28.58%

 

The Uganda Stock Market has risen by +28.58%. Factors responsible for the positive outlook could not be ascertained but the country seems to be well positioned for economic recovery. Source: Giml.co.uk

 

4.  Zimbabwe Stock Exchange (YTD): 24.77%

 

The Zimbabwe Stock Market had a positive YTD performance which has currently placed it as fourth best among African exchanges with improving foreign investor sentiment being a driver as well as the 2013 elections effect. Source: African-Market

 

5.  BRVM (YTD): 21.71%

 

The lengthening of the exchange trading hours coupled with plans to urge smaller companies to list and tie up with neighbouring exchanges must have contributed to the performance of the market. Source: African-Market        

 

6.  Lusaka Stock Exchange (YTD): 19.84%

 

Lusaka Exchange which is the main exchange in Zambia has so far recorded 19.84% YTD gains while the plan to demutualise the exchange might as well as increased activities going on at the exchange might have lifted its performance. Source: Bloomberg 

 

 

7.  Mauritius (YTD): 16.85%

 

The performance of the Mauritius market can be linked to their active global offshore business as well as its openness to foreign investors following the lifting of the foreign exchange controls. Source: 2013 Investment Climate Statement - Mauritius

 

8.  Botswana (YTD): 15.48%

 

The Botswana Stock Exchange is ranked 8th on the list as it has currently recorded +15.48% YTD gains.

 

9.  South Africa (YTD): 13.90%

 

The JSE remains one of the highly ranked countries for market development while its investment in new equity market trading and information platforms may have contribute to its current outlook. Source: Property24

 

10. Egypt (YTD): 13.53%

 

Despite the anti-regime protest in Egypt, it still went ahead to make the top ten performing exchanges in Africa with 13.53% YTD gain while the lifting factors cannot be specifically ascertain. Source: Daily News Egypt

 

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