The week’s real shock did not come from oil alone. With Brent at $92.45 a barrel, down 1.9% on the day and, more importantly, 10.7% over the week, African equities had to absorb a second move that often matters more for returns: foreign exchange. Between a dollar at NGN 1,372.8101, a firmer South African rand at 16.2288 per dollar, and the XOF still fixed to the euro at 655.957, the performance of an African stock can no longer be read from the share price alone; it has to be read through the currency carrying it.
That is the key lens for African stock markets today. A local investor in Lagos, Casablanca or Abidjan does not experience the same impact from a 10.7% drop in Brent, a 2.1% rise in gold to $4,542.9 an ounce, or a 7.6% jump in natural gas to $3.27. Based on the market data in the global backdrop, FX moves this week widened the gap between commodity-exporting exchanges, energy-importing markets and bourses backed by more stable currency regimes.
Key figures
- Brent: $92.45, down 10.7% on the week
- USD/NGN: 1,372.8101, up 0.05%
- USD/ZAR: 16.2288, down 0.81%
- USD/KES: 129.4, up 0.66%
- Gold: $4,542.9, up