Browsing: African Stock Exchanges

The NSE is Africa's third poorest performance stock exchange.

The total value of all equities was estimated to be Sh1.847 trillion as of the end of the year, which is a decrease of Sh2.636 trillion from the beginning of the year. Meanwhile, the NSE main index reached a low point not seen in 19 years due to the departure of foreign investors.

At the end of the trading day, the NSE-20 Share Index reached 1,580 points, a high not seen since 2003.

The share price of Safaricom, which makes up more than half of the value of the stock market, has dropped by 38 per cent since January to a current price of Sh24 per share, down from a price of Sh37.95 per share in January, which has contributed to the fall at the Nairobi bourse.

Due to the stock’s high liquidity and strong business performance, such as profits and dividends, foreigners have exposure to it.…

stock exchange board

A number of African stock exchanges have been hit by an IPO drought in recent years—an indicator of ineffective capital markets. Some exchanges have seen an increase in de-listings.  For instance, Ghana’s stock exchange is reported to have been struck by a wave of de-listings. The crux of the matter is, apart from the biggest stock exchanges, African capital markets have not lived up to their potential as investment harnessing hubs.

Stock Exchanges in Africa 

There are currently 29 exchanges in Africa; most of these are affiliated with the African Securities Exchanges Association. Included in the list of exchanges are two regional bourses. The Bourse Régionale des Valeurs Mobilières (BRVM) in Côte d’Ivoire which is an amalgamation of Benin, Burkina Faso, Guinea Bissau, Côte D’Ivoire, Mali, Niger, Senegal, and Togo.   The other is the Bourse Régionale Valeurs Mobilières D’afrique Centrale (BVMAC) which caters to Central African Republic, Chad, Democratic Republic

Johannesburg Stock Exchange (JSE), has partnered with African Development Bank (AfDB), six strong African exchanges and the African Securities Exchange Association (ASEA), to strengthen investments into Africa.

The collaboration comes to foster cross-border trading and settlement of securities across African countries’ exchanges. Further—the initiatives go after unlocking the Pan-African investment potentials, which also leads to the diversification needs of investors and attending to various drawbacks such as the inadequate depth and liquidity in Africa financial markets.

According to a report by Quartz Africa, Foreign Direct Investment (FDI) is expected to have risen by 20 per cent in 2018 to $ 50 billion after tanking in 2017 by 21 per cent to $42 billion.

More importantly, the seven Stock Exchanges participating in the first phase of the AELP represent about 85% of Africa’s securities market capitalization.

READ: Afreximbank plans $3 billion IPO on London Stock Exchange

The JSE is based …