Major African Stock Indexes and Exchange Rate Changes in Q3-2013

Advansa International follows exchange rates and stock market indexes for several emerging and frontier markets. Exchange rates and stock indexes are recorded on the last trading day of the week. The tables below show changes from the last trading day of the last full week of the quarter for several key markets in Africa.

Table 1 

 STOCK MARKET INDEX TRACKER 3RD QUARTER 2013

AFRICA

COUNTRY

3RD QUARTER PCT CHANGE

GHANA-Local Currency

7.22%

GHANA-US$

0.80%

KENYA-Local Currency

3.66%

KENYA-US$

4.50%

NIGERIA-Local Currency

1.36%

NIGERIA-US$

3.07%

SOUTH AFRICA-Local Currency

12.75%

SOUTH AFRICA-US$

11.26%

WEST AFR. BOURSE-Local Currency

-3.69%

WEST AFR. BOURSE-US$

0.48%

MSCI AFRICA-Local Currency

9.68%

MSCI AFRICA-US$

8.40%

MSCI EMERGING MARKETS-Local Currency

6.26%

MSCI EMERGING MARKETS-US$

6.33%

Sources: Stock exchangewebsites, Financial Times, Advansa International data

Table 2

3RD QUARTER 2013 EXCHANGE RATE TRACKER

AFRICA

COUNTRY

3RD QTR PCT CHG

YTD

SEP PCT CHANGE

CFA AREA*

4.18%

2.42%

GHANA

-6.42%

-12.55%

KENYA

-0.84%

-0.64%

NIGERIA

1.71%

-2.38%

SOUTH AFRICA

-1.49%

-15.86%

TANZANIA

0.74%

-1.98%

UGANDA

1.09%

4.68%

Sources: Financial Times, Advansa International data

*Includes most French speaking countries such as Benin, Cameroon, Cote D’ivoire, Guinea, Senegal, Togo and others

The MSCI Africa index increased by 9.68%% for Q3, compared with the MSCI Emerging markets index which was up 6.26%. Execpt for the West Africa Bourse, all the major stock markets were up this quarter. South African shares picked up after a weak second quarter and gained nearly 13% in local currency in Q3. The Ghana Stock Exchange is on the rise as it has been all year. The strong performance was driven largely by the financial sector with Ecobank, Standard Chartered and Ghana Commercial Bank leading the way. The Nigerian and Kenyan markets were also strong, rising 20% and 19% respectively.

Exchange rates movements in Africa have been relatively small in Q3. The biggest mover was the Ghana cedi which continues to decline, though at a steady and almost predictable rate of about 0.01 cedis per week against the US Dollar. Economic fundamentals have not changed much however the central bank has maintained relatively high interest rates which have kept the currency stable. With the economy growing slowly the Reserve Bank is likely to maintain a looser monetary stance which suggests a weaker rand. The CFA franc strengthened in line with the euro.

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