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Investors gain as African Equity Markets close positively

By on July 8, 2014

African equity markets have shown prospects of delivering positive returns at the end of 2014, going by their performance in the first half (H1) of the year.

THISDAY checks revealed investors in the major African markets  recorded positive returns on their investments as they closed H1 with growths higher than the performance recorded outside the continent.

African markets posted growth between 2.8 per cent and 19.2 per cent. Egypt led with a growth of 19.2 per cent followed by Zambia with 15 per cent. South Africa and Kenya recorded advancement of 10.2 per cent apiece. Ghana posted 9.7 per cent gain while Nigeria posted 2.8 per cent.

Comparatively, markets in United States returned about 6.6 per cent on the average as the S&P 500 Index ended H1 with 6.6 per cent. But Dow Jones posted 2.1 per cent.

In the United Kingdom, FTSE  Index returned 3.6 per cent while in the Asia, returns were negative. Specifically, Nikkei 225 that tracks the performance on Japan market posted a decline of 5.6 per cent, while Hang Seng, the gauge for the China market was 0.50 per cent down.

Although the Nigerian market may have returned a margin 2.8 per cent in H1, which improved to 4.2 per cent by last Friday, a further analysis of the market showed that some individual stocks put smiles on the faces of investors.

Such stocks recorded growth ranging from 111 per cent to 30 per cent in the first six months of the year. Forte Oil Plc led top gainers for the period with 111 per cent.

Forte Oil had similarly posted the highest growth in 2013, fetching investors over 1,164 per cent gain. The Nigerian Stock Exchange (NSE)last week included Forte Oil on the list of its high priced stocks.

Justifying the inclusion, NSE had explained that  a review of trading activities of the company in the last six months showed that the company met the criteria set by the exchange, which including trading above N100 for certain period of time.

Meanwhile, Custodian and Allied Insurance Plc closed as the second highest price gainer for the period, rising by 77 per cent. Trans-nationwide Express Plc returned 76.9 per cent.

IHS Plc, which is planning to delist recorded 40.7 per cent growth, while  Ashaka Cement,  Cadbury Nigeria Plc and Union Dicon Salt Plc chalked up  35.8 per cent, 35.6 per cent and 35 per cent respectively. Seven-Up Bottling Company went up 30.2 per cent among others.

 

[This Day]