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Article: Dollar weakness is strength for African bourses: after two years of spectacular bull runs during which some of Africa's stock exchanges outperformed the best in the world, growth this year will be more modest. This analysis is by Frank Senyo Dewotor of databank securities.(An African Business Special Report)
- Article from:
- African Business
- Article date:
- May 1, 2004
- Author:
CopyrightCOPYRIGHT 2004 IC Publications Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The persistent weakness of the US dollar continues to prove a priceless gift for the stock markets in Africa as they consolidate their two-year long bull run in the first quarter of this year. African stock markets outside Zimbabwe posted an average index return of 9% in the first quarter in local currency terms and 8% in US dollar terms.
This compares favourably with an average return of 7.32% in US dollar terms posted by emerging and frontier markets, and 4.55% by the developed markets. Since December 2002, African markets have risen on average by 54.5% in US dollar terms compared to 47.1% by the developed markets and 67.6% by emerging and frontier markets.
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