African Thoughts: April 14, 2014


Activity increased last week with value traded amounting to $143.04m (+10.32%) thanks to a number of large block trades. The market managed to close the week higher with the ASI gaining +0.96% thanks largely to banking stocks with the Banking Index gaining +1.89% with great performances from UBA (+4.23%), Zenith (+4.18%) and GTB (+1.78%). In the tier-2 banking space there were good performances from Fidelity (+10.26%) and Wema Bank (+4.80%). Consumers also had a strong week with the Index gaining 1.43% thanks to Cadbury (+9.72%) and Nestle (+5.39%). Access Bank released their FY-13 results for the period ended 31st December 2013. PAT declined by 8% yoy to N36.3bn. Skye Bank also released their FY-13 results for the period ended 31st December 2013 with PAT increasing to N16.02bn. Nigeria's economy surpassed South Africa's as the largest on the continent after the West African nation overhauled its gross domestic product data for the first time in two decades.


The market closed the week slightly lower in Nairobi with the NSE 20 Index falling -0.1% to close at 4,905.46. Equity turnover however climbed 107.4% to $56.3m thanks largely to a massive block trade in Safcom on Friday whereby 123m shares traded in total (foreign on both sides). KNCB put in a good performance and gained 2.7% to close at KES 47.25 thanks to foreign demand. Liberty gained 9.1% after the insurer released solid FY 2013 results. EABL was the second most active counter for the week as a total of $10.36m worth of stock changed hands. Bamburi Cement fell -2.5% after the Business Daily quoted the competition authority saying that it would make an announcement in three months as to whether Lafarge had a dominant position in Kenya having stakes in both Bamburi and EA Portland. The Financial Times has quoted a senior manager at the Kenya National Bureau of Statistics saying that the gross domestic product for 2009, the new base year from 2001, was ‘about 20% higher than previously estimated’.


The market came under a bit of pressure last week with the Industrial Index falling -2.14% which takes the YTD loss to -14.61%. Delta was the major drag on the market with the brewer falling -4.34% after releasing a disappointing trading update (-18% decline in premium lager volumes). On the positive side activity remained fairly robust with value traded or the week amounting to $9.25m thanks to large block trades in Delta and Willdale. There was also some decent activity in Innscor and DZL.


The market closed the week lower in Port Louis with the Semdex falling -0.3%. Both of the two major banking stocks closed the week unchanged with MCBG at Rs215 and SBM at Rs1.04. MCBG and SBM dominated activity with a number of decent crosses going through in the counters. NMH had a very strong week and gained +3.5% to close at Rs89.00.

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