Ecobank inaugurates index for African bond markets

The Ecobank Group has inagurated the first-ever benchmark index to measure the performance of sub-Saharan African domestic bond markets, excluding South Africa.The Ecobank Middle Africa Bond Index, according to a statement by the bank on Thursday, was developed in partnership with Nedbank Capital.The statement added that the index would enable both institutions to further build on their extensive local market expertise in issuing, managing and trading fixed income securities and local currencies across sub-Saharan Africa.The index has been developed as a volume weighted benchmark to replicate the underlying performance of selected SSA domestic sovereign bond markets.The weighting formula reflects the influences of changes in Gross Domestic Product indicators, liquidity levels and the regulatory environment and, based on public information sources, provides an objective and largely independent view.The Ecobank MABI currently consists of sovereign bonds from Benin, Cte dIvoire, Senegal, Togo, Ghana, Kenya and Nigeria, with a further eight countries being considered for future inclusion.Aithnard said, Investor appetite for domestic African bonds is increasing as a result both of the continents strong and sustained economic growth prospects and the global search for yield. The Ecobank MABI provides a unique performance benchmark for investors looking to diversify their African fixed income portfolio or to broaden their overall exposure to frontier markets.By providing a highly visible way of measuring returns, the Ecobank MABI is likely to attract more investors to Middle Africas bond markets and, ultimately, improve market liquidity.Meanwhile equity trading on the floor of the Nigerian Stock Exchange continued on a downward trend on Thursday, with indices shedding significant points.The NSEs All-Share Index, which stood at 19,829.29 points on Wednesday, slipped by 0.5 per cent or 96.95 basis points to close at 19,732.34 points.Similarly, the market capitalisation of the listed equities fell by 0.1 per cent or N6bn to close at N6.235tn down from N6.240tn the preceding day.The NSE-30 Index also lost 0.6 per cent or 5.01 basis points to 877.81 points, down to 882.82 the previous day.A total of 29 stocks recorded losses at the close of activities on Thursday, as against, nine stocks that gained.UAC Property Development Company and Learn Africa Plc recorded the highest loss, shedding five per cent to close at N12.16 and N3.61 per share respectively.
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