African equity markets performed strongly this week with some markets posting gains above 5% week-on-week. This echoed a strong week on global markets where major indices reached all-time highs and the bitcoin even broke above the 20,000$ bar. Markets seemed to be boosted by the progressive rollout of vaccines in the UK and the US, as well comments from the Fed. Hopes of advances in stimulus talks in the US also fueled positive sentiment among traders through the week, although on Friday markets closed down on signs that outstanding issues on this front remained.
On the Continent, Nigeria led the pack. The market benchmark index jumped 7.46% over the week, rising steadily on each trading day to close on Friday at 36,804.75 index points. Factors such as reopening of some of the territorial borders on Wednesday, and oil reaching its March levels helped in boosting buying pressure on leading NSE 30 Stocks like MTN Nigeria, Dangote that rallied close to their 52 weeks high. Year-to-date, the market in Lagos is up 37.12% in naira terms and the market capitalisation now stands at NGN 19.24tn (USD 50.6bn).
Other top performers this week include the Zimbabwean stock market which had another impressive week with the all-share index soaring 7.17%, bringing the YTD performance to 836% locally, and an estimated 92% in USD terms, the BRVM which jumped 6.82% on the back of strong recovery of its market heavyweight, Sonatel, up 19% with no apparent reason, and the Casablanca stock market that saw its all-share index gain 1.35%. Both markets remain down YTD by 8.08% and 5.35%, respectively.
The South African juggernaut may have lost some steam on Friday, with the JSE ASI declining 1.25%, the market is still up 4.74% so far this year in rand terms, and it even turned positive in US dollars terms as the South African currency benefited from a boost seen on other emerging market currencies as well.
