Low week as African markets record losses

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Low week as African markets record losses

THE SouthernTIMES Mar 19, 2018

    > Business Correspondent

    Overall, it was a low market week in terms of the stocks performance in African markets with the majority of the markets showing loses.  

    As at 21 February 2018, the African stocks saw movers from  Egypt, Nigeria, Kenya and Zimbabwe. The South African JSE-All Share decreased 647 points or 1.10 percent to 58054 on Wednesday from 58701 in the previous trading session. 

    Major moves on the day saw Imperial [JSE:IPL] and BHP Billiton (JSE:BIL) close lower, down by 9.87 percent and 4.78 percent, in terms of the shakers we saw the  Consolidated Infrastructure Group going down by 6.36 percent, Bidvest Group declined by 5.69 percent and Ascendis Health was down 5.18 percent. 

    With regards to the currency, the South African rand traded warily against major currencies trading at R11.75 to the US dollar, R16.43 to the British pound and R14.51 to the euro. South Africa’s inflation rate fell to 4.4 percent in January from 4.7 percent in December, slightly below market expectations of 4.5 percent. 

    It was the lowest reading since March 2015 as prices increased less mostly for transport and food. Inflation was steady for housing and utilities.  With regards to market anticipations, investors were looking at the South African national budget and the focus was on tax changes.

    In Botswana, the stock exchange index decreased 4 points or 0.04 percent to 8,709 on Tuesday 20 February 20,8712 in the previous trading session. The Domestic Equity Market saw 56 trades with a volume of P9,000,851 and a turnover of P18,167,531.44. The outlook for price stability remains positive as inflation is forecast to be within the 3-6 percent objective range in the medium term. 

    Meanwhile, inflation increased from 2.9 percent in November to 3.2 percent in December 2017. In January 2018, headline inflation fell to 3.1 percent from 3.2 percent in December 2017. According to the latest data from Statistics Botswana, inflation fell for most commodity groups, including food and non-alcoholic beverages (from 1.1 to 0.4 percent); alcoholic beverages and tobacco (from 3.4 to 2.4 percent); clothing and footwear (from 2.5 to 2.1 percent); furnishing, household equipment and routine maintenance (from 2.4 to 2.2 percent); health (from 1.9 to 1.4 percent); recreation and culture (from 2.1 to 1.9 percent); and restaurants and hotels (from 3.9 to 3.4 percent). However, this was partly offset by rising inflation for transport (from 4.1 to 5 percent); education (from 4.2 to 5.5 percent); and miscellaneous goods and services (from 2.8 to 3 percent). Inflation was unchanged for housing, water, electricity, gas and other fuels (5.8 percent); and communication (1.2 percent). The trimmed mean measure of core inflation and inflation, excluding administered prices, fell from 2.9 to 2.8 percent and 2.3 to 2.2 percent, respectively. 

    With regards to the Botswana pula, USD-BWP decreased 0.0036 or 0.04 percent to 9.5293 on Wednesday from 9.5329 in the previous trading session. Historically, the Botswana pula reached an all-time high of 11.72 in January of 2016 and a record low of 4.16 in March of 2005.

    In Nairobi stocks increased 8 points or 0.21 percent to 3727 on Tuesday February 20 from 3713 in the previous trading session. Historically, the Kenya Stock Market (NSE20) reached an all-time high of 5499.64 in March of 2015 and a record low of 2789.64 in January of 2017. 

    The market capitalisation ended at (Kenya shillings in billions) 2,677.39, the total share traded was 35,048,300.00, equity turnover was 1,319,552,307.00 and total equity deals were 1,283.00. With regards to inflation, consumer prices in Kenya rose 4.8 percent year-on-year in January of 2018, after a 4.5 percent gain in the previous month. Prices advanced at a faster pace after easing for five consecutive months, mostly due to food and housing and utilities. 

    The inflation rate in Kenya averaged 10.06 percent from 2005 until 2018, reaching an all-time high of 31.50 percent in May of 2008 and a record low of 3.18 percent in October of 2010. The Kenyan shilling rate to the US$ decreased 0.1500 or 0.15 percent to 101.1500 on Monday February 19 from 101.3000 in the previous trading session. 

    Historically, the Kenyan shilling reached an all-time high of 106.15 in September of 2015 and a record low of 36.23 in January of 1993. 

    The Kenyan shilling is expected to trade at 102.95 by the end of this quarter, according to Trading Economics global macro models and analysts’ expectations. Looking forward, it is estimated to trade at 102.95 in 12 months’ time

    The Lusaka Stock Exchange on Tuesday 20 February recorded 6 trades and a total of 20,173 shares were transacted, resulting in a market turnover of Zambian kwacha 40,363. Trading was recorded in BATZ and CECZ. The LuSE (Lusaka Stock Exchange) All Share Index (LASI) maintained the previous close of 5,582.63 points as there were no share price movements. The market remained on a capitalisation of ZK63,427,420,898, including Shoprite Holdings and ZK29,188,214,918, excluding Shoprite Holdings. The consumer price index in Zambia rose 6.2 percent year-on-year in January of 2018, up from a 6.1 percent gain in December. 

    Prices were higher for non-food products (8.1 percent vs 7.5 percent), namely due to increases in costs of Lifebuoy soap, firewood, men leather shoes, Jik bleach and Sanpic disinfectants. Meanwhile, prices slowed for food (4.6 percent vs 4.8 percent), mostly breakfast mealie meal, roller mealie meal and maize grain. On a monthly basis, consumer prices inched up 1 percent compared to a 0.7 percent rise in the previous month. Inflation rate in Zambia averaged 9.91 percent from 2005 until 2018, reaching an all-time high of 22.90 percent in February of 2016 and a record low of 6 percent in December of 201. The Zambian kwacha (USS-ZMW) traded at 9.8500 on Monday, February 19. 

    The Zimbabwe Stock Exchange saw the All Share index rebounding 0.28 points (0.32 percent) to settle at 88.72 as four counters gained ground. The consumer prices in Zimbabwe increased 3.52 percent year-on-year in January of 2018, following a 3.46 percent rise in the previous month. The inflation rate in Zimbabwe averaged 0.92 percent from 2009 until 2018, reaching an all-time high of 5.30 percent in May of 2010 and a record low of -7.50 percent in December of 2009.

    The Mauritius Stock Exchange (SEMDEX) increased 9 points or 0.41 percent to 2291 on Wednesday February 21 from 2281 in the previous trading session. With regards to the Mauritian rupee, the US$-MUR increased 0.4000 or 1.25 percent to 32.4000 on Monday February 19 from 32.0000 in the previous trading session. 

    Consumer prices in Mauritius increased 6.2 percent year-on-year in January of 2018, accelerating from a 4.2 percent rise in the previous month. It was the highest inflation rate since June, as prices went up faster for: food (12.1 percent vs 5.4 percent in December 2017); transport (6.4 percent vs 5.7 percent); furnishing (3.1 percent vs 2.3 percent), and restaurant and hotels (2.3 percent from 2.2 percent). 

    Prices rose less for: clothing (1.9 percent vs 2.8 percent); health (3.8 percent vs 4.5 percent); recreation & culture (1.7 percent vs 2.3 percent); alcoholic beverages & tobacco (10.2 percent vs 10.6 percent); miscellaneous goods & services (0.5 percent vs 1.8 percent), and education (0.3 percent from 3.3 percent) while prices of communication were flat. In contrast, cost fell for housing (-1 percent vs 1.4 percent). On a monthly basis, consumer prices went up 2.6 percent, after increasing 0.6 percent in the prior month. Inflation Rate in Mauritius averaged 6.18 percent from 1988 until 2018. 

     
     
     

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