If you’re anything like me, you’ve contracted a full-blown case of
Olympic fever. So, in the spirit of the week, I’d like to hand out some
medals for some outstanding performances delivered by Africa’s stock
exchanges. It’s the inaugural InvestingInAfrica.net Olympiad!
Below are the dollar-adjusted returns of African stock indexes over
the past month, six months, year, three years, and six years (period
ending July 30, 2012). The top three performers in each “event” were
awarded medals.
(Note: Tanzania and Uganda were disqualified from
competition because their primary indexes are dominated by
cross-listings from Kenya.)
Let the games begin!
The Dash: One-Month US$ Return
| Gold |
MSCI Nigeria Index |
11.6% |
| Silver |
MSCI Ghana Index |
7.6% |
| Bronze |
MSCI Kenya Index |
4.2% |
Not much of a contest in this event. Nigeria came out strong thanks
to a nice currency tailwind. The Naira appreciated nearly 1.0% against
the dollar in July. But it probably didn’t make a whole lot of
difference in the final analysis as index stalwarts
Nigerian Breweries,
Dangote Cement, and
Nestle Nigeria posted returns well into the double digits.
Ghana snagged the silver medal on the back of an impressive 12.8% local currency return from
Fan Milk, and in spite of the sudden death of the country’s president, John Atta Mills.
The Sprint: Six-Month US$ Return
| Gold |
MSCI Kenya Index |
26.7% |
| Silver |
MSCI Nigeria Index |
18.4% |
| Bronze |
MSCI Zimbabwe Index |
5.8% |
The past six months have clearly belonged to Kenya’s Nairobi Securities Exchange. Powerful showings from
East African Breweries (35%),
Equity Bank (37%), and
KCB Bank
(35%) in a relatively stable currency environment propelled the MSCI
Kenya Index to the gold medal in the six-month sprint – beating Nigeria
by a margin of over 800 basis points.
Zimbabwe snuck in for the bronze due to a fine 17% run from
Econet Wireless.
The Short-Distance Run: One-Year US$ Return
| Gold |
MSCI Kenya Index |
18.2% |
| Silver |
Namibia Local Index |
4.7% |
| Bronze |
MSCI Nigeria Index |
1.1% |
Kenya impressed in more than the sprints. Its track record over the
past year left its nearest competitor in the dust. Powerhouse EABL got a
fine supporting performance from petroleum retailer,
KenolKobil (up 48% in local currency) and a
friendly 7.8% push from a resurgent shilling.
The 15K: Three-Year US$ Return
| Gold |
Namibia Local Index |
52.3% |
| Silver |
MSCI South Africa Index |
44.7% |
| Bronze |
Lusaka Stock Exchange All Share Index |
43.6% |
One of the most competitive events turned out to be the middle
distance three-year run. Little Namibia took the field by surprise,
sneaking past its emerging market neighbor, South Africa for the win.
Both Namibia and South Africa fought a 4.5% currency headwind to post
their solid marks.
The Marathon: Six-Year US$ Return
| Gold |
Namibia Local Index |
150.1% |
| Silver |
MSCI Mauritius Index |
134.7% |
| Bronze |
Lusaka Stock Exchange All Share Index |
94.7% |
The premiere event also belonged to upstart Namibia. Although
Mauritius Commercial Bank and the rest of the Mauritian squad mounted a strong challenge, ultimately no other index could hang with a team led by
FNB Namibia,
Namibia Breweries, and
Bidvest.
Zambia picked up a second bronze by relying on an especially strong performance from
Lafarge Zambia.
Medal Count
So there you have it. With two golds and a silver, Namibia leads the
medal count, followed closely by Kenya and its two golds and a bronze.
