Most African markets closed in positive territories. However, the markets which declined, did so in a severe fashion.
The ZSE gained 1.03%. According to its finance minister, Zimbabwe has met all conditions to clear arrears to the World Bank and African Development Bank. This should pave the way for possible future funding from the International Monetary Fund. Clearance of debt arrears is expected to enable foreign inflows and possible debt treatment by the Paris Club and non-Paris Club Bilateral Creditors through an IMF financing programme. The country’s economy has been struggling and suffers from cash shortage and limited foreign exchange inflow. Hence, this should provide some relief.
The NGSE gained 2.26%. Nigeria’s central bank introduced a new policy to allow foreign investors to engage in foreign exchange trading at rates the buyers and sellers set. The central bank has created this new foreign-exchange platform to attract back traders to the market by allowing them to trade the currency more freely. Specific transactions are eligible for the system and this includes loan repayments, interest payments, capital repatriation and remittances. Only banks, portfolio investors, exporters and the central bank are allowed to sell hard currency. This is an attempt to let the currency float while still keeping a hand on the movements.
According to Ghana’s Statistical Service, the country’s economy grew 3.5% last year in comparison to 3.9% the year before, the slowest rate in two decades. The contraction is mainly attributable to weaknesses in the oil and gas sector. The GSE gained 0.55%.
In a new address, South African central Bank Governor stated that inflation is under control. He mentioned that the priority is to maintain a policy of low inflation. The inflation is expected to reach the target range and slow to 5.4% next year and 5.5% in 2019. The JSE increased by 3.11%.
The EGX30 lost 2.95%. Commercial International Bank (CIB), the largest relative weight in the market, fell 3.04% after 807,700 shares were exchanged at EGP 59.7 million.
