Rewane Projects a Bearish Stock Market Outlook, Citing Agriculture and Other Sectors as Likely Losers

Dike Onwuamaeze

As Africa prepares to face the third major Ebola outbreak, Bismarck Rewane, Chief Executive of Financial Derivatives Company Limited (FDC), has cautioned that a severe and prolonged Ebola 3.0 could depress the stock market and hit sectors such as agriculture, banking, aviation, hospitality and creative industries.

In a recent presentation, Rewane explained that the outbreak poses a threat to travel, tourism and the creative sector, which could suffer substantial losses from cancelled live events, concerts and movie premieres.

He said: “For a severe and prolonged outbreak, the stock market impact would likely be bearish, driven by weaker economic activity, lower investor confidence, and capital outflows. But if the outbreak is quickly contained, the effect would likely be temporary, similar to Nigeria’s experience in 2014.”

Rewane noted that Ebola 3.0 could heighten uncertainty, prompting investors to adopt a risk‑averse stance and shift funds into safer assets such as Treasury Bills and bonds, thereby reducing market capitalisation and stock prices.

Other consequences include “lower corporate earnings expectations, leading to weaker equity valuations” as “international investors typically withdraw funds from countries facing major health crises.” He added that “banking stocks could come under pressure due to concerns over asset quality and profitability.”