The majority of African stocks have been drifting in and out of the red as the Covid-19 pandemic continues to bite, setting investors into panic mode, leading to some of the looking for other avenues to protect their wealth.
The stock in Rwanda is the only one that is smiling. The RSEASI has gained 12.8 percent in 12 months and a similar percentage growth on a year-to-date basis. Ghana’s GGSECI has plunged 24.4 percent in 12 months and 17.8 percent on a year-to-date basis.
The Kenyan NASI has not been spared by the economic turmoil. It has dropped 11.6 percent in 12 months and 19.4 percent on a year-to-date basis. In Nigeria, the NGSEASI has been hit, dropping 18.4 percent in 12 months and 22.5 percent on a year-to-date basis.
The South African JALSH has dropped 23.5 percent within 12 months and 23.1 percent on a year-to-date basis. The Ugandan USEALSI has dropped 15.1 percent in a year and 27.0 percent on a year-to-date basis.
The Zambian LASILZ has dropped 39.0 percent in 12 months and 28.5 percent on a year-to-date basis while the Tanzanian DARSDSEI has dropped 18.5 percent in 12 months and 55.4 percent on a year-to-date basis.
RSEASI was the best performing index showing resilience amid the COVID-19 pandemic attributable to the easing of the lockdown measures with the government allowing restricted movement of people and restricted opening of businesses such as hotels and restaurants. The country received a total of USD 220.5 mn from the IMF to finance the country’s budget needs as well as the urgent balance of payments,
DARSDSEI was the worst-performing index with losses of 55.4 percent YTD, attributable to the continued selloffs brought by concerns about the economic fallout caused by the Coronavirus. The ban on International travel bans has taken a toll on the country’s tourism sector, which had been one of the fastest-growing sectors in the economy, and,
Nairobi All Share Index (NASI), recorded losses of 19.4 percent YTD, attributable to the ongoing Coronavirus pandemic, with investors selling out of the equities market.