NCM2020 (5) - African Stock Markets Record Improved Performance in 2019


Saturday, January 25, 2020 / 06:00 AM / By Proshare Research/ Header Image Credit: EcoGraphics


The African stock market recorded a general improvement from last year despite various economic headwinds.


Zimbabwe (Zimbabwe Industrial Index) +56.12%

Zimbabwe's economic woes still persist, as it still battles with high unemployment, inflation, poverty and low GDP growth rate. Despite these economic woes the Zimbabwe stock market has witnessed positive improvement from last year.

  • Economic conditions worsened sharply in the first half of 2019.
  • Inflation has been on the rise since October 2018, induced by monetization of sizable fiscal deficits of the past, price distortions, and local currency depreciation. Annual inflation reached 480.7% in November, 2019.
  • To stabilize the exchange rate, the Government mandated the use of the Zimbabwe dollar as a sole legal tender on June 24, ending the multicurrency regime in place for over a decade. However, with critically low levels of official reserves, constrained access to external financing and limited tools by Central Bank to sterilize the economy, the local currency has continued to depreciate.
  • Extreme poverty is estimated to have risen from 29% in 2018 to 34% in 2019, or from 4.7 to 5.7mn people. The increase in poverty is driven by economic contraction, sharp rise in prices of food, cyclone idai and basic commodities.
  • With dwindling reserves, there is a high risk of a vicious circle of wage-price spiral and exchange rate overshooting, plunging the country into hyperinflation and economic crisis.


Kenya (All Share Index) +17.79%

Kenya's economy in 2019 was relatively stable. The relative stable growth translated into positive growth in its stock market.

  • Kenya continues to experience steady economic growth, with real GDP expanding on average by about +5.6% over the last five years (2014-2018). In 2019, however, economic activity has softened primarily due to lower agricultural output and weak private sector investment.
  • Headline inflation was +5.56% in November, 2019 which is attributed to lower energy prices, which was able to offset temporary pressure from rising food prices in H1. This is reflecting an economy where underlying demand pressures are still benign. The low inflationary pressure has also been supported by a stable local currency.
  • Kenya's manufacturing exports to Africa (which accounted for 35.3% of its merchandise export in 2018) have contracted for the third consecutive year from Ksh.242.2bn in 2015) to Ksh.216.2bn in 2018 (an average of -3.6% decline per year) in part due to intensified competition in these markets, indicating a need to boost competitiveness for Kenyan manufacturing. The current account deficit continues to be adequately financed by official borrowing and private investment inflows (portfolio and direct investment).


South Africa (JSE All Share Index) +11.19%

South-Africa stock market witnessed a positive growth by +11.19%, an improvement from negative growth rate last year.

  • The South-African economy contracted to -0.6% in Q3, 2019. Even as the economy contracted in the third quarter, the Johannesburg Stock Exchange's benchmark index is charting gains. 
  • South-Africa's economic growth hasn't exceeded 2% since 2013. The South-African economy in 2019 recorded failing state companies and ballooning debt which has been sapping business and consumer confidence.
  • Local companies have been battered by a mix of local and international problems in 2019, including South African staples like creeping economic growth, high levels of unemployment and continued pressure from labour unions.
  • Companies have also had to contend with brewing trade wars between the US and China, political confusion around Brexit, and local electioneering.
  • The continued lack of sufficient growth has weighed on the government's revenue collection and made it even more difficult to lower an employment rate that's close to 30% and that's seen as one of the biggest obstacles to reducing poverty in one of the world's most unequal nations.
  • Credit ratings companies such as moody's investors services and fitch ratings  have been flagging deteriorating debt metrics due to low GDP growth and high budget deficits as a key risk.
  • Despite these pressures, many of South Africa's biggest companies have emerged victorious - led by the mining sector that has seen its biggest resurgence in more than a decade.

Egypt (EGX 30) +6.51%

The Egyptian economy has witnessed significant growth in its economy. The economic reforms that took place in the economy has attracted more liquidity into the economy. The positive economic growth has translated into positive growth in its stock market.

  • Egypt's economy is growing rapidly. Gross domestic product (GDP) grew to +5.6% in the third quarter of 2019 against +5.4% in the same period of 2017-2018.
  • The Eqyptian EGX recorded a gain from last year. The positive gain in the market has been supported by its low level of inflation.
  • Low inflation rate is a gain to the (Central Bank of Egypt) and expectations of another cut of interest rates on deposit and lending, which supports the provision of liquidity to companies operating in the Egyptian market supported by the end of the summer rents and the international markets are starting to adopt a wave of improvement against the backdrop of the slow pace of trade war between the US and China.
  • Low inflation rate, IMF funding and support has helped improve the attractiveness of the country in the eyes of investors, injecting billions of dollars into the domestic debt market as economic growth picked up in the country.


Ghana (GSE Composite Index) -12.53%

Despite the growth witnessed in the Ghanaian economy, the stock market moved in opposite direction has it experienced a negative growth rate.

  • Ghana's economy grew by +5.6% in Q3, 2019 compared with +7.4% in the same period of last year
  • Private sector credit grew stronger, supported largely by the well-capitalized banking sector.
  • Inflation continued to be in single digits in the first three quarters of 2019; gradually rising from +9% in January to +9.5% in April 2019 but reduced to +8.2% in November 2019 mainly driven by low food inflation.
  • Fiscal performance for the first half of 2019 showed an overall budget deficit (on cash basis) of 3.3% of GDP higher than the target of 2.9% of GDP. This is because the revenue shortfalls of 1.6% of GDP was higher than expenditure cuts of 1% of GDP.
  • Ghana's energy sector is in dire financial conditions and without remedy, this poses serious fiscal risks in the coming years. The sector is facing high costs from excess power capacity and natural gas supply, which are exacerbating the existing revenue gap.


Nigeria (All Share Index) -15.95%

  • The Nigerian economy is still vulnerable to oil-price volatility as the economy is yet to diversify away from oil.
  • Nigeria's inflation rate has consistently been on the rise since the border closure with its most recent inflation rate at +11.85%.
  • Growth picked up modestly in the third quarter on the back of strengthening momentum in the non-oil segment of the economy. Notably, the industrial sector posted the strongest expansion in a year and a half, underpinned by more upbeat manufacturing and construction activity. Meanwhile, output in the all-important oil sector remained robust in Q3, despite weakening slightly, lending further support to the expansion.
  • The economy is projected to gain some steam next year largely on the back of stronger household spending, supported by the full implementation of the minimum wage increase. The outlook remains fragile, however, dampened by high unemployment, insecurity challenges, power shortages, low oil prices and a more subdued global economic environment.


Botswana (DCI) -4.44%

Botswana's low level of economic growth has negatively affected the growth of its stock market. The stock market dipped negatively in 2019.

  • The Botswana economy recorded a growth rate of +3.2% in Q1 2019 but growth rate has decelerated to +1.6% in Q2 2019 and further decelerated to +0.2% in Q3 2019. After a sizable downturn in mining caused growth to fall to a two-year low in the second quarter.
  • Notably, merchandise exports contracted at an even sharper rate on a decline in overseas sales of diamonds, which account for nearly 90% of total exports. Lower diamond shipments reflect the fall in output prompted by the closure of the Orapa mine in April and the challenging external backdrop.
  • In addition, firms were less optimistic about business conditions in Q3, suggesting deteriorating private sector activity as the worst drought in a decade wiped out crops and livestock through the quarter. Meanwhile, in politics, the opposition challenged October's elections results in court on 26 November, amid claims of electoral fraud. 


Proshare Nigeria Pvt. Ltd.


There was an improvement in the performance of African Stock markets when compared with the performance of 2018.  Out of (36) African stock markets reviewed, (22) were green signifying an improvement while (12) were red signifying a dip.

Zimbabwe's Industrial and Mining Index which topped the list last year remained top with gains of 56.12% and 35.12% respectively while Kenya's FTNSE NSE Kenya 25 index 28.78%. Mauritius SEM7 recorded the least gain of 0.38%.


The three top losers where Egypt's EGX 70, Egypt EGX 100 and Lusaka All-Share Index with losses of -23.61%, -19.41% and -18.75% respectively.


Do feel free to share your opinions/observations and feedback with us vide and/or


Proshare Nigeria Pvt. Ltd.


Related News From Proshare 2019 Review and 2020 Outlook Report

1.      NCM2020 (4) - Africa's Projected 4% Growth Is Insufficient To Make A Dent

2.     NCM2020 (3) - General Improvement In Global Stock Markets Amid Economic Headwinds

3.     NCM2020 (2) - Significant Downtrend Recorded in Global Growth; Major Economies Negatively Affected

4.     NCM2020 (1) - Financial Markets in Transition; Understanding Past Uncertainties, Preparing for New Possibilities


Proshare Nigeria Pvt. Ltd.



Related News From Proshare 2018 Review and 2019 Outlook Report

1.      Proshare NCM 2018 Review and 2019 Outlook (26) - The Capital Market: Facing Uncertainty and Grabbing Opportunities

2.     Proshare NCM 2018 Review and 2019 Outlook (25) - Nigeria: Crouching Tiger, Hidden Lion

3.     Proshare NCM 2018 Review and 2019 Outlook (24) - Sectoral Market Capitalizations - Oil and Gas Sector Recorded 7.24% Growth in 2018

4.     Proshare NCM 2018 Review and 2019 Outlook (23) - Agriculture Sector  OKOMUOIL Tops on EPS as PRESCO Tops on PE Ratio

5.     Proshare NCM 2018 Review and 2019 Outlook (22) -Healthcare Sector- MORISON Tops on EPS, PAT Margin and ROE

6.     Proshare NCM 2018 Review and 2019 Outlook (21) - Industrial Goods - DANGCEM Tops on EPS, PAT Margin as BERGER Tops on PE Ratio

7.     Proshare NCM 2018 Review and 2019 Outlook (20) - Oil and Gas Sector - SEPLAT Tops on EPS and PAT Margin

8.     Proshare NCM 2018 Review and 2019 Outlook (19)- Consumer Goods Sector - NESTLE Tops on EPS as ENAMELWA Tops on PE Ratio

9.     Proshare NCM 2018 Review and 2019 Outlook (18) - Financial Services Sector - STANBIC Tops on ROE as NESF Tops on EPS

10.  Proshare NCM 2018 Review and 2019 Outlook (17) - Eight Financial Services Stocks Dominate the List of 28 Stocks You Should Not Touch

11.   Proshare NCM 2018 Review and 2019 Outlook (16) - Stocks Off and Near 52-Week Highs and Lows

12.  Proshare NCM 2018 Review and 2019 Outlook (15) - Extracts of Financials of Quoted companies - DANGCEM Tops on Revenue, PAT and Net Assets

13.  Proshare NCM 2018 Review and 2019 Outlook (14) - Growth of Securities Listed on NSE - Total Securities Listed Increased By 9.58%

14.  Proshare NCM 2018 Review and 2019 Outlook (13) - Forty-Six Financial Services Stocks Are Penny Stocks in 2018

15.  Proshare NCM 2018 Review and 2019 Outlook (12) - Foreign Portfolio Participation in Equity Trading in 2018

16.  Proshare NCM 2018 Review and 2019 Outlook (11) - Market Records 32 Gainers to 109 Losers in 2018; CCNN Tops Gainers List

17.  Proshare NCM 2018 Review and 2019 Outlook (10) - NSE ASI Performance Review and How Each Company Fared in 2018

18.  Proshare NCM 2018 Review and 2019 Outlook (9) - New Listings and De-Listings in 2018: Market Records One New Listing and Four De-listings

19.  Proshare NCM 2018 Review and 2019 Outlook (8) - Trading Statistics in 2018 - Total Market Volume Increased By 5.92%

20. Proshare NCM 2018 Review and 2019 Outlook (7) - Bond Market: Safety In A Season Of Uncertainty

21.  Proshare NCM 2018 Review and 2019 Outlook (6) -  Mutual Funds -A Tale of Mixed Fortunes

22. Proshare NCM 2018 Review and 2019 Outlook (5) - Market Records 8.53% Growth in Q1’18; Negative Sentiment Permeates in Subsequent Quarters

23. Proshare NCM 2018 Review and 2019 Outlook (4) - Economic Indicators: Moving Forward Slowly

24. Proshare NCM 2018 Review and 2019 Outlook (3) - African Markets Still Depressed

25. Proshare NCM 2018 Review and 2019 Outlook (2)- Global Market in Tumbles

26. Proshare NCM 2018 Review and 2019 Outlook (1)- Surviving Uncertain Times in the Nigerian Financial Market


Proshare Nigeria Pvt. Ltd.


Related News From Proshare 2017 Year End Review

1.      Financial Services Sector is the Most Capitalized Sector; Contributes 31.62% to Total Market CAP

2.     Extract from Financials - DANGCEM Tops Companies by Turnover, PAT, Fixed Asset as well as Net Asset

3.     Global ETFs in 2017

4.     Stocks Trading at Their Nominal Value as at 29122017

5.     DANGSUGAR, INTBREW Top Gainers as MORISON, JAIZBANK Top Losers in 2017

6.     New Listings and Delistings in 2017

7.     Trading Statistics in 2017 - TRANSCORP, UBA Top Market Volume

8.     Argentina, Nigeria Lead as Best Performing Stock Markets in the World in 2017

9.     Stock You Should Not Touch - 63 Stocks Record No Price Movement in 2017

10.   Stocks Off and Near 52-Week Highs and Lows as at 221217

11.   Top 10 Policy Reforms in 2017

12.  Zimbabwe, Malawi Stock Markets Lead African Markets in 2017 as Ivorian BRVM-10 Top Losers

13.  Nigeria's Top Ten News Makers in 2017

14.  Nigeria’s Economic Indicators in 2017

15.  Market Movements in 2017 - Forex Reserves Up by 44.54%

16.  Foreign Portfolio Participation in Equity Trading in 2017

17.  Oil and Gas Sector - SEPLAT, ETERNA Top Gainers as FO Records -47.19% YTD Return

18.  Consumer Goods Sector - GUINNESS Records Over 3,000 PE Ratio

19.  Financial Services Sector - GUARANTY Records 40.52% PAT Margin as NESF Tops on EPS

20. NSE ASI Performance Review and How Key Sectors Fared in 2017

21.  47 Financial Services Sector Stocks Are Penny Stocks in 2017

22. Movers and Shakers in 2017 - DANGCEM, GUARANTY Record Growth in MKT CAP as FO, MOBIL Lead Otherwise


Proshare Nigeria Pvt. Ltd.


Related News From Proshare 2016 Year End Review

1.      Trading Statistics in 2016 - UBA, WEMANK Top Market Total Volume in 2016

2.     82 Quoted Companies Declared Dividends and Bonuses in 2016

3.     38 out of 47 Stocks Listed Between 2008 and 2016 Trade Below Their Listing Prices

4.     7 Stocks With PE Ratio Within Average Market Acceptable Ratio

5.     Consumer Goods Sector - NESTLE, CHAMPION and NB Record Over 1,000 PE Ratio

6.     Healthcare Sector Records No Gainer as EKOCORP Tops on EPS and PE Ratio

7.     Financial Services Sector - NESF Records 47.42 EPS Ratio as Banking Stocks Dominate Gainers List.

8.     45 Resignations Announced by Quoted Companies in 2016

9.     104 Appointments Made by Quoted Companies in 2016

10.  Foreign Portfolio Participation in Equity Trading Drops in 2016

11.   Stocks from the Financial Services Sector Dominate the List of Penny Stocks in 2016

12.  NSE ASI Performance Review and How Key Sectors Fared in 2016

13.  Movers and Shakers in 2016 -GUARANTY, SEPLAT Record Growth in Market CAP as FO, WAPCO Lead Otherwise

14.  Global Market: Argentina, Italy lead as Best Performing Stock Markets in the World


Proshare Nigeria Pvt. Ltd.


Related News From Proshare 2015 Year End Review

1.      Trading Statistics by Sector in 2015: Financial Services Tops with over 80% Contribution by Volume

2.     Trading Statistics in 2015: Total Market Volume Drops by -5.10%

3.      Movers and Shakers in 2015: WAPCO, FO Record Growth in Market Capitalization 

4.     Nigerian Stock Market Records -22.47% YTD loss as EVANSMED Tops Losers with -78.07%

5.     Nigeria's top newsmakers of the year 2015

6.     How key Sectors fared in 2015

7.     The NBS Consumer Price Index - January to November 2015


8.     Where to invest in 2016 as economic uncertainties continue to grow

9.     Top 10 Policy Reforms in 2015

10.   Nigerian Economic Indicators in 2015


Proshare Nigeria Pvt. Ltd.


Related News - Reviews and Outlooks

1.      FY 2020 Outlook: Treading Uncharted Waters - CardinalStone Research - Jan 21, 2020

2.     NSR H1 2020 (10) - Monetary Policy - CBN Caressing Both FPIs and Economic Growth - ARM - Jan 20, 2020

3.     NOVA Economic Outlook H1 2020 - Nigerian Economy To Grow By 2.4% YoY Over 2020 - NOVA Mercahant Bank - Jan 17, 2020

4.     Year Ahead 2020 - Re-risking The Financial System - Coronation Research - Jan 16, 2020

5.     Meristem Research 2020 Outlook - Finding Alpha Amidst The Haze - Mersitem Research - Jan 08, 2020

6.     Nigeria in 2020: Awakening the Sleeping Giant - WSTC - Jan 07, 2020

7.     Nigeria Economic Outlook 2020: A Different Playing Field - United Capital Research - Jan 02, 2020

8.     Nigeria FY 2020 Outlook - A Delicate Sprout - Vetiva Research - Dec 17, 2019

9.     2020 Outlook: At the Cliff's Edge - Macroeconomic Review and Outlook - Cordros  Dec 10, 2019


Proshare Nigeria Pvt. Ltd.

Proshare Nigeria Pvt. Ltd.

Related News