Last week brought mixed performances across African equity markets, highlighting distinct regional dynamics. While Kenya and Nigeria posted notable gains, Zimbabwe and Tanzania faced significant challenges. Ghana continues to lead as the top-performing market of the year in local currency, with a stellar YTD return of +51.22%, while Kenya takes the lead in USD and EUR terms, with YTD gains of +57.12% and +64.98%, respectively. Let’s explore the key trends and stories shaping the markets this week.

Kenya emerged as the standout performer this week, recording a weekly increase of +3.36%. The NSE All Share Index continues to reflect strong investor confidence, with year-to-date (YTD) returns of +57.12% in USD and +64.98% in EUR. These figures underline both market strength and currency stability, making Kenya one of the most attractive markets in the region this year. Notably, Kenya Power & Lighting Company Plc led the week's gains with an impressive +17.23%, while Bamburi Cement Plc experienced the sharpest decline, dropping -13.89%.

Nigeria also delivered a strong showing this week, with the NGX ASI rising by +1.19%. Despite challenges from currency depreciation, the local YTD return stands at +32.90%, while USD and EUR returns remain negative at -22.60% and -19.13% respectively. On the corporate front, Golden Guinea Breweries Plc was the top performer this week, surging +45,45%, bringing its impressive YTD growth to +174.29%. Conversely, Secure Electronic Technology Plc led the declines with a weekly drop of -22.86%. Meanwhile, the two largest market capitalizations on the Nigerian Exchange, Dangote Cement Plc and Airtel Africa Plc, remained stable, closing the week at NGN 478.80 and NGN 2,156.90, respectively. The relative stability of these giants underscores a broader balance in market sentiment despite ongoing challenges.

Morocco, despite a weekly decline of -0.39%, continues to show robust YTD returns, notably +21.60%. A key highlight this week was the strategic partnership forged between the Bourse de Casablanca and the upcoming Ethiopian Securities Exchange. This collaboration aims to leverage Moroccan expertise to support the development of Ethiopia's financial markets, showcasing Morocco's leadership in advancing regional financial integration in Africa. On the corporate front, Morocco’s capital market continues to grow, with CMGP Group, a key player in the agricultural industry, set to officially list on the main market of the Casablanca Stock Exchange this Monday, 16 December 2024. 

The BRVM (Bourse Régionale des Valeurs Mobilières) recorded a slight weekly increase of +0.03%, with YTD local returns reaching +28.64%. This week also marked the successful listing of the Loterie Nationale du Bénin on Friday 13 December 2024, the stock surged by +4% on its first trading day, underscoring strong investor enthusiasm and confidence. The week’s top performer was Bank of Africa Côte d’Ivoire, which climbed +8.04%, while SOLIBRA recorded the steepest decline, dropping by -13.30%.

Egypt saw a slight decline of -0.14% this week, continuing to grapple with macroeconomic pressures and currency instability. YTD returns in USD remain deeply negative at -24.52%. However, on the corporate side, Egypt is advancing its privatization agenda, the Egyptian government is planning to offer stakes in 10 companies in 2025, including banks, state-owned enterprises, and Armed Forces-affiliated firms, Prime Minister Mostafa Madbouly revealed in a press conference. Additionally, The United Bank was officially listed on the Egyptian Exchange (EGX) on 10 December 2024, following an IPO that raised EGP 4.59 billion and was oversubscribed 59 times. Meanwhile, the launch of Egypt's financial derivatives market has been postponed to Q2 2025, the delay comes as preparations for the market, in coordination with the Egyptian Exchange (EGX), are still underway.

Ghana continues to dominate as one of the top-performing markets in Africa this year, with the GSE-CI delivering an impressive year-to-date (YTD) return of +51.22% in local terms. In USD and EUR terms, the market has also performed well, with YTD returns of +22.87% and +29.05%, respectively. However, this week, the GSE-CI recorded a slight decline of -0.10%. The Ghanaian market remains a key focus for investors seeking high growth potential in West Africa.

Zimbabwe saw one of the steepest weekly drops, with its index plunging by -5.48%. The country’s persistent economic challenges, including hyperinflation and instability, continue to weigh heavily on its market. The YTD USD return is -74.66%. This week’s decline was largely driven by sharp drops in key stocks, including Willdale Limited (-42.63%), Seed Co Limited (-27.37%), British American Tobacco Zimbabwe Limited (-23.92%), and Fidelity Life Assurance Limited (-15.00%). In contrast, ZB Financial Holdings Limited emerged as the top performer of the week, gaining +9.59%, offering a bright spot in an otherwise turbulent market.

The BVMAC (Bourse des Valeurs Mobilières de l'Afrique Centrale) is gearing up for a significant development with the announcement of the upcoming listing of BGFI Holding Corporation, scheduled for 2025. BGFI, a major player in banking and financial services across Central Africa, plans to go public on the region's primary stock exchange, marking a milestone for the BVMAC and the broader economic integration of the CEMAC zone. This IPO is expected to enhance liquidity and visibility for the exchange, while also providing investors access to one of the most prominent financial institutions in the region. The listing aligns with the BVMAC’s strategy to attract high-profile issuers and strengthen its role as a driver of economic growth in Central Africa.

The upcoming Ethiopian Securities Exchange (ESX) has secured the necessary licenses to establish Ethiopia's first organized securities market. This landmark development marks a significant step in the country's economic transformation and financial sector modernization. Set to become operational in 2025, the ESX aims to provide a platform for companies to access capital markets while offering investors diversified opportunities. Backed by both public and private sector partnerships, this initiative reflects Ethiopia's commitment to fostering economic growth and enhancing financial inclusion in one of Africa’s largest economies. The ESX also plans to leverage regional partnerships, such as its strategic collaboration with the Casablanca Stock Exchange, to ensure its success and sustainability.