African Equity Market: On the Path of Recovery

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Friday, May 29, 2020 / 3:00 PM / United Capital Research / Header Image Credit: Globetrotter 

 

Despite the COVID-19 pandemic that has engulfed the African continent since Feb-2020 and the associated lockdown measures that were put in place by the government across the continent, major equity markets across the region have continued to recover from their March low, especially in the month of May 2020.


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Although on a YTD basis, all the ten exchanges that we track within the continent remained in the red territory, stock market performance in five (South Africa, Nigeria, Tunisia, Morocco and Mauritius) of the countries recorded a m/m gain in May-2020. The recovery has been boosted to a large extent by the expansionary policies that have been adopted by both the fiscal and monetary authorities to combat the negative impact of the lockdown/COVID-19 outbreak. Also, the gradual re-opening of economic activities by the government in Nigeria, South Africa, Tunisia, Egypt, and Mauritius have since supported activities at the equity market. Similarly, rebalancing in the global commodity market amid output cut by Oil exporting countries, easy monetary policy, and gradual reopening of business activities in China, Germany and increasing number of States in the US have since spurred some risk-on sentiment.

 

Looking ahead, we expect the overall interest in African market equities to strengthen as more countries begin to ease lockdown policies and businesses begin to re-open.

 

Top African Stories

  • Kenya central bank leaves rates unchanged, says past measures are being helpful: The committee has cut its main interest rate by a total of 125 basis points over two meetings to support the economy since its first case of the new coronavirus was reported in mid-March. Read more

  • S.African restaurant group Famous Brands expects revenue upturn in June: South African restaurant group Famous Brands, owner of chains such as Steers and Wimpy, expects revenue to pick up in June to 35% of normal monthly levels as the country eases lockdown restrictions further. Read more

  • Zimbabwe gold miners to keep more export earnings in dollars: Zimbabwe will increase the proportion of dollars gold miners can keep from their sales, the central bank's bullion-buying arm said on Wednesday, yielding to pressure from producers who were pushing to retain more. Read more

  • Coronavirus to cut S.Africa's 2020 mining output by 8-10% -industry body: South Africa's mining production is likely to fall by between 8% and 10% this year due to the COVID-19 pandemic. Read more

  • South African state asset manager proposes converting Eskom bonds into equity - chairman: South African state asset manager the Public Investment Corporation (PIC) has submitted a proposal to government on converting bonds it holds in struggling state utility Eskom into equity, PIC chairman Reuel Khoza told Reuters in an interview.  Read more

  • Angola warns that COVID-19 could delay oil bid round: A bid round for nine oilfield licenses in Angola could be delayed by the coronavirus outbreak, the national petroleum regulator said on Thursday. Read more

  • S.Africa plans $20.5 bln of public works to spur economy: S.Africa is planning projects worth $20.5 billion in sectors such as transport, energy and water as it looks to drive an economic recovery from the coronavirus crisis. Read more

 

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Angola

Apr-2020 Inflation Report -  May 29th

 

Egypt

May-2020 PMI Report - June 3rd

May-2020 Reserves Report - June 8th

 

Ghana 

May-2020 PMI Report - June 3rd

Q1-2020 GDP Report - June 17th

 

Kenya

Mar-2020 Oversea Remittances - May 28th

May-2020 Inflation Report - May 29th

Q1-2020 GDP Report - June 18th 

 

Morocco

Policy Rate Meeting Outcome - June 19th

Q1-2020 GDP Report - June 21st

 

Nigeria

May-2020 PMI Report -  June 3rd

May-2020 Inflation Report - June 15th

 

South Africa

Apr-2020 Trade Balance Report - May 29th

Q1-2020 Unemployment Report - June 6th


Visit African Markets in Proshare MARKETS

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