SSA Equity Market: A Sellers' Market Save for Nigeria

Proshare

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

  • S. African Stocks Test 2020's Best Close as Mining Giants Climb Read Now
  • Kenya's Sugar Sector Gets Additional 2-year COMESA Sugar Imports Safeguard Read Now
  • Rwanda's GDP Declines By 12.4% in the Second Quarter Read Now
  • Ramaphosa Reinstates Restrictions in South African Virus Hotspot Read Now
  • Botswana's Central Bank Cuts Key Interest Rate to Record Low Read Now
  • Ethiopia, World Bank ink over $512.5 mln finance agreement Read No
  • Ivorian Cocoa Farmers Threaten to Boycott Programs in Price Spat Read Now
  • IATA Projects African Airlines to Lose $3.7 Billion in 2020&2021 Read Now

 

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

 

Proshare Nigeria Pvt. Ltd.


Visit African Markets in Proshare MARKETS

 Proshare Nigeria Pvt. Ltd.

 

 

 Proshare Nigeria Pvt. Ltd.

 

Related News

1.      Why the South African Rand is 2nd-Best Performing EM Currency

2.     Zambia Default: Lessons for other African countries

3.     AfCFTA: Key to Africa's Recovery and Prosperity?

4.     Economics, Banking and Finance in Emerging Markets

5.     A Look at Global Governments and COVID-19

6.     Let's Talk African Trade and The US Elections

7.     The Rise of New Industry Stocks Under COVID-19

8.     What to Watch for in China's 5-Year Plan as Economy Shifts to Self-Sufficiency

9.     African Economies: From COVID-19 to Crisis

10.  How Are SSA Economies Preparing for a Post-COVID-19 Environment?

11.   Zambia Closer to Eurobond Default as It Skips Interest Payment

12.  How Are SSA Economies Preparing for a Post-COVID-19 Environment?

13.  Zambia Closer to Eurobond Default as It Skips Interest Payment

14.  Time for an Ambitious Response to COVID-19 from Africa - FBNQuest

15.  Egypt's Debut International Green Bond: An African First

16.  Federal Reserve Begins 2020 Census of Finance Companies and Other Lenders

17.  Off the Cliff - Sub-Saharan African Update

18.  Emerging Market Covenant Quality Reaches All-time Weakest Level Amid Slowing Issuance

19.  Will A Zambian Default Risk Worsen Credit Risk Premium For SSA Issuers?

Nigeria, South Africa and Ghana: Pre-COVID, COVID and Post-COVID

Proshare Nigeria Pvt. Ltd.
READ MORE:
Related News
SCROLL TO TOP