SSA Equity Market in H2-2020: Wheezing from the impact of COVID-19

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Friday, July 10, 2020/ 2:03 PM / United Capital Research / Header Image Credit: Business Insider

 

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The performance of equity markets across the world was a tale of two quarters in H1-2020. This was as the outbreak of the COVID-19 pandemic in Q1-2020 spurred a broad-based risk-off sentiment while the synchronized injections of fiscal and monetary stimulus spurred a risk-on sentiment later in Q2-2020.

 

Despite the recovery in Q2-2020, major equity indices in the global, emerging and frontier markets remain below the water, still wheezing from the negative impact of COVID-19-induced selloffs. Notably, all the six bourses under our coverage in SSA ended H1-2020 in the negative territories. Looking ahead, we expect the overall interest in SSA equities to strengthen as more countries continue to ease lockdown policies and businesses begin to re-open. Also, the low interest rate environment in the developed market, the continued rollout of monetary and fiscal monetary stimulus and our expectation for currencies within the region to strengthen as external as well as domestic conditions improve, should spur a renewed foreign.

 

Top African Stories

Ghana health workers warn of potential COVID-19 calamity: he coronavirus epidemic risks overwhelming Ghana's health sector if the government does not take urgent action such as guaranteeing health workers have sufficient protective gear, national medical groups said on Thursday. Read more

 

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  • Africa's CDC urges more COVID-19 tests, masks, as continent's cases top 500,000: African countries urgently need to scale up coronavirus testing and the use of face masks, a regional disease control body said on Thursday, as the epidemic gains traction across the continent with confirmed cases topping half a million. Read more

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  • Angola Makes New Oil-Cut Pledge: Angola sent a new letter to OPEC's president committing to full compliance with its output target, as well as additional cutbacks in compensation for earlier cheating, according to a delegate who asked not to be identified. Read more

 

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Looking Forward

 

Angola

Jun-2020 Inflation Report - July 23rd

Policy Rate Decision - July 24th

 

Egypt

May 2020 Production Index MoM - July 12th

 

Ghana

Jun-2020 Inflation Report - July 15th

Policy Rate Decision - July 27th

 

Kenya

Policy Rate Decision - July 26th

July-2020 Inflation Report - July 31st

 

Morocco

Jun-2020 Inflation Report - July 22nd

 

Nigeria

Jun-2020 Inflation Report - July 15th

Policy Rate Decision - July 21st

 

South Africa

May-2020 Inflation Report - July 15th

 

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Proshare Nigeria Pvt. Ltd.


Proshare Nigeria Pvt. Ltd.


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