Some African markets seem not to know which direction to follow as signs emerge that world markets are losing momentum as the post-Brexit rally has reached its peak. Some weak corporate results tarnished the bright picture that dominated Wall Street’s run contaminating Asian and European markets along. The recovery in resources also stopped following the retreat in the prices of oil, copper and precious metals. After the latest robust run in worldwide markets in anticipation of possible monetary stimulus programmes from the world’s major central banks to offset any Brexit consequences, it now seems that the world markets are waiting for a correction.
NGSE ASI plunged by 3.98% and is the worst performer of the week. More than a month after the currency was devalued, the naira fell beyond 300 to the dollar for the first time as Nigeria is fighting against a scarcity of foreign exchange. The weakening economy with oil revenue and production declining and inflation rising are all challenges the country is facing. The International Monetary Fund said it now expects the country’s economy to contract by 1.8% this year. Finance Minister Adeosun reacted to IMF’s comment stating that should Nigeria face recession if its economy further contracts in the second quarter, it would be a short one as the lifting of fuel subsidies and boosting of non-oil production should stimulate the economy. Budget Minister Udoma Udo Udoma expects the economy to begin to grow again from the third quarter on to the fourth quarter.
The Egyptian Exchange’s benchmark saw a slide during the week, pressured by the exchange rate’s fluctuations as well as a possible devaluation of the local currency. EGX30 fell 1.93%.
JSE ASI slightly decreased by 0.16%. AngloGold reported its first half revenue returning to profit as it benefitted from higher bullion prices and weaker currencies in the countries where it operates i.e. South Africa, Brazil, Australia and Argentina. Headline earnings came in a range of $87 million to $99 million from a loss of $128 million a year earlier. Moreover, as expected by most economists, the central bank left the benchmark repurchase rate unchanged at 7% for the second consecutive time last Thursday. Besides, the central bank cut its growth forecast for the year to 0% from 0.6% and to 1.1% from 1.3% next year. In 2018, the central bank expect the economy to grow by 1.5%, expectations were it to grow by 1.7% before. They find themselves in a tricky position where they have to cast inflation while trying to drive growth as much as possible.
Latest Listing
| Company | Market | Listing date |
| Marsa Maroc | Casablanca Stock Exchange | 2016-07-19 |
