African Thoughts: August 03, 2015


Nigeria:

Nothing much changes in Lagos as the general apathy towards the market continues to drag the ASI lower on thin volumes. The ASI fell by 2.93% with both the banks (-7.00%) and consumers (-3.31%) weak. In these sectors most of the losses were attributed to GT Bank (N22.99, -9.49%), Access Bank (N4.77, -8.09%), Guinness (N125.10, -11.59%) and NB (N121.00,-4.72%) while other major losses were seen on Transcorp (N2.06, -10.43%) and Mansard (N2.53, -9.64%). We are fully into 2015 H1 reporting and last week we saw results out in the likes of Lafarge, FCMB, Dangote Cement, Forte Oil, Dangote Flour, Dangote Sugar, Ashaka Cement, UACN, Skye Bank, Nestle, 7UP, ETI, Flour Mills, GlaxoSmithKline, Seplat, et al.

Kenya:

The market fell for a 4th consecutive week. Local investors are not in the market and as such the index just continues to drip lower. Volumes remain decent with foreign participants heavily dominant. The only large cap to rise last week was EABL which closed up 1.4% at KES294.00. The other large caps had a torrid week as some aggressive selling pushed them lower. The banks were particularly hard hit - Equity Bank fell by 6.5% to KES39.25 while KNCB closed 8.3% lower at KES50.00. Safcom followed suit and fell by 5.9% to KES14.40.

Zimbabwe:

The Industrials continues to weaken and fell by a further 38bps last week (YTD -10.71%). The Harare bourse is just completely out of favour despite most local brokers having come to terms with the new automated trading system. Of the large cap movers we saw Econet fall by 5.85% to 32.01c while Delta closed marginally lower at 99.50c. OKZim rebounded by 7.89% to 8.2c while Innscor rose by 1.55% to 62.98c.

Mauritius:

The Semdex climbed by 1.1% last week as MCBG pulled the index higher. MCBG closed at all-time high of Rs225.00 (+3.2%). SBMH jumped onto MCBG's coattails and rose by 1.1% to Rs0.89.

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