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The interest in Africa is growing
After another strong week of trading profit-taking have Allshare-leading index on the Johannesburg Stock Exchange (JSE) on Friday, down by 1.06 percent in the red zone. At 30 118 points he recorded yet still within range of a multi-month high.
“The Meeting of G20 Finance Ministers in the context of the smoldering for weeks international monetary dispute, the risk today dampened significantly,” said an analyst of local, especially the sharp drop in bank stock prices (the bank index lost 1.7 percent on Friday). “In addition, profit-taking, according to a generally strong stock market week is normal.”

Finance ministers and central bankers of the 20 major economic powers (G20), including South Africa, have advised the South Korean city of Kyongju on weekends. In the center stood the progress in reforming the global financial system after the economic crisis and the reform of the International Monetary Fund (IMF) and other international organizations. Also on the international currency dispute was discussed. The meeting is a preparation for the fifth G-20 summit in three weeks in Seoul.

The interest of international investors is limited but has long been not only to the heavyweights in the world economy, as many observers realize. “The African stock markets have long led a shadowy existence. But in 2010 they have come increasingly into fashion and there are also some good reasons, “the Frankfurter Allgemeine Zeitung commented on the weekend. Some of these reasons are comparatively rapid economic growth from a heavy removable base, positive structural changes in technology and economy, a rapidly growing middle class as a support increasing consumption and mineral wealth of the continent – that calls for quite some time, particularly Chinese investors on the plan.

Thus, the acquisition activities of international groups on the continent have recently increased significantly and the fund company Fidelity has recently confirmed that Africa is getting more aware of foreign investors. Moreover, the U.S. retail giant Walmart has recently made known that he wants to take the South African mass-Mart supermarket chain. Another elephant wedding planned, however, burst again. After the end of two months of exclusive negotiations have not produced any HSBC bid for Nedbank, said the insurer Old Mutual, Nedbank’s controlling shareholder, in mid-October. The reasons for withdrawal were Old Mutual is not known, but they had nothing to do with the fact that HBSC after exploring the Nedbank was dissatisfied. The business could amount to almost 50 billion rand / Namibia Dollar.

This bad news for local investors (the shares of Old Mutual and Nedbank devalued violently) but followed the announcement by the international mining group Xstrata to invest around five billion rand in the expansion of its Lion ferrochrome smelter. “Xstrata has shown that confidence in his investment in the Cape, despite uncertainties in terms of power supply and irritating nationalization efforts in certain political circles,” commented media.

Significant losses in the stock of American Express (Amex) have burdened the Dow Jones index on Friday something. Stockbrokers justified the slight losses in the U.S. standard values with a total reluctance of investors who were waiting for the results to banking and financial regulations of the G20 summit in November.

The leading Dow Jones Industrial fell 0.13 percent to 11,132 points, having closed the previous day still on the highest level since early May. In weekly view, this meant an increase of 0.63 percent.