The ZSE Ind. is the best performer of the week gaining 7.52%. In order to solve the issue of cash shortage in the country, the country is introducing dollar-backed bond notes announced the central bank Governor John Mangudya. Since the 2009 crisis, the country is facing a shortage in foreign currencies and bond notes should tackle the issue. However, the concept is facing push backs as people look at them as a return to the controversial Zimbabwean dollar. This, despite the fact that the bonds would be backed by a $200mn loan from a multilateral lender.
The DSE ASI gained 3.51%, supported by cross listed stocks which went all the way up such as Kenya Airways which shares increased strongly as pilots suspended strike, Uchumi Supermarket and Acacia Mining results.
The GSE-CI was down 1.28%. The Ministry of Finance announced in a statement that the government raised less money than expected and even spent more on goods, services and capex than expected. The budget deficit reached 3.5% of GDP in the period running until July above the 3.00% target. On Thursday, the government approved a budget of 11 billion cedi for the first quarter of 2017, compared with revenue and grants of 9 billion cedi for the same period.
Early findings from the investigation supposedly suggest that MTN may have move more than $14bn out of the country. This investigation comes just a few months after MTN agreed to pay a 330 billion naira ($1.1 billion) fine in cash to the Nigerian government for missing a deadline to disconnect 5.1 million customers unregistered in the country. The NGSE-ASI lost 0.95%.
The JSE ASI gained 0.94%. As expected South Africa’s inflation accelerated in September due to low base effects, overtaking the target range of 3-6%. The Reserve Bank expects the inflation will return within the target by 2H17.
The Bank of Uganda cut its benchmark interest rate by 100 basis points to 13% with a view to support the domestic economic growth. The Governor justified this move based on the inflation expectations in the medium-term with a target of 5% over the next four quarters. Should the drought impact the cost of food prices, headline inflation could trend upward as a result. Overall, expansion in Uganda came in at 3.9% in the second quarter, compared with 5.4% yoy and 4.1% in 1Q16.The central bank’s next meeting is set in December of this year. The USE ASI lost 0.41%.
The EGX30 traded lower the whole week except for the end of the week amid lack of positive data, a foggy scene of Egypt's monetary policy and significant low liquidity level. The index lost 2.69%. Moreover, according to the Egyptian Prime Minister, the country has managed to secure 60% of the $6bn in financing required to receive the loan from the IMF. The Prime Minister did not reveal the sources of the 60% secured finances.
The NSE ASI lost 1.27%. Atlas African Industries Limited was suspended from trading on Monday after its nominated adviser resigned for undisclosed reasons. The firm which is dual-listed on London’s alternative investment Market and Nairobi Securities Exchanges said the suspension would continue until a new adviser is appointed.
