Performance of African Stock Markets

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The positive sentiment continues to prevail in most African Markets with Zimbabwe being this week’s best performer.

In a statement, the IMF said that Zimbabwe’s cash shortages could intensify and inflation may rise if President Robert Mugabe’s government does not temper excessive state spending. Official data on showed inflation has risen for the second consecutive month, rising to 0.48% in April following more than two years of deflation. The ZSE Ind. still gained 4.45%.

The JSE gained 0.67%. The IMF raised its forecast for economic growth in South Africa, saying that the end of the severe drought will boost agricultural production while increasing commodity prices will revitalise mining. The IMF now expects GDP growth of 1% for the country this year.

In Nigeria, the union dispute with Exxon continues as the union has decided to pursue the strikes. Strikes started following the firing of 83 staff which the union believes were wrongfully terminated. Exxon operates the terminal for Qua Iboe crude, which is the nation’s biggest export grade. These strikes could potentially have negative impact on oil production should the union start to remove members from other oil facilities in Nigeria if the dispute intensifies. The NGSE lost 0.28%.

Rwanda’s telecom industry regulator has fined MTN Rwanda $8.5 mn for running its IT services outside the country in breach of its licence. It appears MTN Rwanda was hosting its IT services hub in Uganda, which the regulator had forbidden. Also, in its second review of Rwanda’s Policy Support Instrument, the IMF forecasted that GDP growth would accelerate this year largely driven by recovery of the agricultural sector, growth in exports, and reduction in the trade deficit. The IMF expects that Rwanda’s economy will grow by 6.2% in 2017. The RSE lost 0.14%.

South Africa’s Vodacom announced it will buy a 35% stake in Safaricom from its parent company Vodafone for $2.59 bn, increasing its reach into Kenya. According to Vodacom, “The transaction will expose Vodacom Group to the attractive high growth Kenyan market, being one of the largest and most advanced economies in east and central Africa that has made significant strides in technological innovation”. The NSE gained 1.20%.

Source: Africanmarkets.com 

 

 

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