The IC Composite Index declined by -0.08% to close the week at 146.4 on the back of losses recorded in PALM CI (-8.2%), BICI (-7.5%), Unilever (-7.5%) and Shell CI (-7.4%). During the week, gains were recorded in Filtisac (+11.1%), SODE (+7.4%) and CIE (+7.2%). The top traders by value were Sonatel (USD 1.8m), SAPH (USD 1.1m) and Palm CI (USD 377k), these three counters accounted for 86% of this week’s turnover of XOF 1.9bn (USD 3.7m). The average weekly value traded on the BRVM in the last six months is XOF 1.2bn (USD 2.4m). The IC Composite index is up +5.4% (+5.5% in USD) YTD and the total market capitalisation for the BRVM is currently USD 6.6bn.
West African regional bloc ECOWAS says it is gearing for an eventual military intervention mission to Mali. However, ECOWAS and Mali appear to have divergent views on what that mission will entail. The Economic Community of West African States says it can no longer hesitate when it comes to northern Mali, which has been under the control of al-Qaida-linked militants since early April, after a military coup toppled the central government in Bamako. Foreign and defence ministers from member states met Monday in Abidjan to approve a plan for the ECOWAS mission to Mali.
According to the IMF, Senegal’s gross domestic product (GDP) is expected to tick up to 4.3% in 2013 from a forecast of 3.7% this year on the back of infrastructure projects and a recovery in its agricultural sector. The International Monetary Fund stated that inflation, which stood at 1.5% in the first half of 2012, was expected to remain well below 2% in the coming months. Completion of projects in the electricity and road sectors, recovery in the agricultural sector and mining projects will contribute to boosting growth. Despite the gloomy international context, GDP growth is expected to increase sustained primarily by major projects. The current account deficit should decline, but would remain high in light of imports associated with investments in the energy and mining sectors. The overall balance of payments is expected to post a slight deficit. IMF urged the new Senegalese government to maintain its budget deficit target in order to ensure fiscal sustainability. Senegal’s budget deficit is expected to be reduced to less than 5% of GDP in 2013. Between 2000 and 2010, Senegal’s budget deficit grew to 6.7% of GDP or XOF 455bn and was projected to hit 8.2% if nothing was done.
Extracted from Africa Weekly Report by African Alliance.
