The African continent represents a major attraction for foreign investors looking to invest in the continents frontier markets. For most of these investors access to African markets are limited to just a handful of stock exchanges.
In this article, we bring to you 5 of Africa’s largest stock exchange where foreign investors often look at investing in.
Johannesburg Stock Exchange (JSE)
The JSE is the biggest stock exchange in Africa by Market Capitalisation. It was founded on November 8, 1887.
It is South Africa’s only full service securities exchange, connecting buyers and sellers in a variety of different markets, namely equities, equity derivatives, agricultural derivatives and interest rate instruments.
- Market Capitalisation – $987 billion.
- Number of Companies Listed – 388
- Foreign Domiciled Companies – 76
- Market Cap over GDP ratio is 278.94%
- Trading and Settlement – T+3
Nigerian Stock Exchange (NSE)
The Nigerian Stock Exchange started in 1960 as the Lagos Stock Exchange. I’m 1977, it changed its name to the Nigerian Stock Exchange.
The NSE is one of the most developed stock exchanges in Africa and offers a range of instruments for investors in the equities, bonds and derivatives market.
- Market Cap – $44 billion
- Market Cap over GDP ratio – 8.83%
- Number of Companies Listed – 176
Egyptian Stock Exchange
The Egyptian Stock Exchange (EGX) comprises two exchanges, Alexandria opened in 1883 and Cairo stock exchange opened in 1903.
Market Cap – $46 billion
Number of Listed Companies – 222
Market Cap to GDP ratio – 17.61%
Trading and Settlement – T+0 for securities traded by the intra-day trading system. T+1 for all other securities.
Casablanca Stock Exchange
The Casablanca Stock Exchange was established in 1929, and was known as the “Office de compensation des valeurs mobilieres (office for clearing of transferable securities)
- Market Cap – $48 billion
- Market Cap to GDP ratio – 46.43%
- Number of listed companies – 75
- Trading and Settlement – T+3
Namibian Stock Exchange
The Namibian Stock Exchange is one of the oldest stock exchanges in Africa, founded in 1904. It relaunched in 1992.
The Namibian Stock Exchange is the second biggest stock exchange in Africa in terms of Market Capitalisation, as it has been making use of the Johannesburg Stock Exchange’s equity trading systems and services to trade, clear and settle it’s securities.
The International Finance Corporation (IFC) in 2016, raised about $12 million in bonds which was used for private sector development in the country. This shows the faith of the international investing community in a market like the Namibian.
Market Cap – About $76 billion
Number of Listed Companies – 36
Bitcoin ETF in North America has reached $1 billion in assets
The first North American Bitcoin ETF has already reached $1 billion (C$1.25 billion) in assets less than two months after its launch.
According to a statement from its issuer, the first North American Bitcoin ETF has already reached $1 billion (C$1.25 billion) in assets less than two months after its launch. What exchange-traded funds did to the conventional investing market for decades could happen to cryptocurrency players in a fraction of the time.
Investors are clamoring for crypto exposure, particularly in an exchange-traded fund wrapper, and the product from Toronto-based Purpose Investments, ticker BTCC, has seen a lot of interest. Although there are many crypto funds in Europe that work similarly to ETFs, this is the first ETF anywhere.
More than $165 million worth of shares were traded on the fund’s first trading day in February, a big start for a fund in the much smaller Canadian ETF market.
Its rapid cash accumulation reflects the high demand for Bitcoin products in the United States, as issuers compete for approval of the first Bitcoin ETF in the nation. Despite regulator resistance to accept the tactics, at least eight companies, including VanEck Associates Corp. and WisdomTree Investments, now have live applications with the Securities and Exchange Commission.
On Tuesday, Bitcoin surged to an all-time high of about $63,246 ahead of Coinbase Global Inc.’s upcoming IPO later this week.
There is an increasing expectation that a bitcoin ETF will be available in the United States in the not-too-distant future. Gary Gensler, the nominated chairman of the Securities and Exchange Commission, has taught cryptocurrency classes. The bitcoin market has exploded in popularity in recent months, attracting the attention of major financial institutions. Bitcoin ETFs are once again being sought by VanEck, Fidelity, and others.
One advantage of ETFs is that shares can be readily created and redeemed to arbitrage away any discount or premium, which could greatly broaden their appeal. ETFs are also cheaper, which will put pressure on fees across the bitcoin ecosystem. Hence market sentiment may push the ETF higher.
JAPAULGOLD, STERLNBANK surge, GUINNESS plunges
The All-Share Index decreased by -0.29% to close at 38,601.83 from 38,712.55 index points.
The Nigerian Stock Exchange market made another bearish run at the end of the trading session. The All-Share Index decreased by -0.29% to close at 38,601.83 from 38,712.55 index points.
- The Nigerian Stock Exchange market value currently stands at NGN 20.26Tr. Its Year-to-Date (YTD) returns currently stands at -4.14%.
- The market closed beneath expectation as JAPAULGOLD led 15 Gainers, and GUINNESS topped the chart of 18 Losers with a noticeable bearish movement by the NSE ASI.
- JAPAULGOLD up +8.70% to close at N0.75
- NAHCO up +7.39% to close at N 2.18
- STERLNBANK up +7.14% to close at N1.80
- STANBIC up +5.75% to close at N46.00
- CHAMS up +5.00% to close at N0.21
- GUINNESS down -9.91% to close at N24.10
- TRIPPLEG down -9.72% to close at N0.65
- NCR down -9.68% to close at N2.52
- CHAMPION down -9.09% to close at N2.00
- JAIZBANK down -7.69% to close at N0.60
Analysts’ predictions of a recovery in the market were halted by another bearish trend at the end of the trading session on Tuesday, though there is strong optimism that a recovery from the financial and consumer sectors will push the NSE-ASI back to profit.
Nairametrics advises cautious participation in the stock market in this era of growing uncertainties.
Nairametrics | Company Earnings
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- Friesland Campina Wamco Nigeria Plc announces AGM, proposes dividend of N6.74 per share.
- ETI appoints Akin Dada as Group Executive, Corporate & Investment banking.
- Union Homes REIT proposes final dividend worth N465.03 million for shareholders.
- GT Bank Plc holds FY 2020 investors presentation.
- Cornerstone Insurance Plc notifies stakeholders of late submission of financial statements.