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Friday, December 04, 2020/ 03:00PM / United Capital Research /
Header Image Credit: Brand Spur
The performance of the
equity market in the global, emerging and frontier markets was largely negative
in H1-2020, the bearish sentiment observed in the market was attributable to
the coronavirus pandemic, with investors exiting their positions in riskier assets
like equities in favour of safe havens (the US treasury). This action changed
the fortune of the SSA equity market under our watch as Foreign investors in
SSA equity market took flight despite the fact that some SSA markets started on
a good note with Nigeria's equity market ranked among the best performers in
the world early in the year.
Fast track to H2- 2020,
the narrative changed. The global market turned positive, fueled by the
relaxation of lockdown across the world coupled with dovish monetary stances
across the globe, giving room for economic activities to rebound. Nevertheless,
save for Nigeria, which witnessed a major correction and surged above it
pre-COVID level, sentiment for majority of the bourses in SSA remained broadly
negative due to a relatively high yield environment, poor monetary policy
stimulus and weaker macroeconomic outlook.
While the Nigerian bourse
was a clear outperformer (+30.3% YTD), driven by an heterodox monetary policy
framework which crashed rates on TBills, followed by the S/African JSE, up
3.2%, Sentiment for Stocks in Mauritius (-26.2% YTD), Ghana (-19.4% YTD), the
West Africa BRVM (- 17.2% YTD) and Kenya (-12.1% YTD) remained broadly
negative. Looking ahead, we expect a broad-based rebound in 2021on the back of
improvement in the overall macro environment.
Top African Stories
Looking
Forward
Ghana
General
Elections-December 7th
Nov-2020
Inflation Report-December 11th
Kenya
Oct-2020
M3 Money Supply YoY - December 10th
Morocco
Nov-2020
M3 Money Supply - December 11th
Dec-2020
Interest Rate Announcement - December 12th
South
Africa
Nov-2020
Foreign Exchange Reserves - December 7th
Q3-2020
GDP Report - December 8th
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