African Thoughts: December 08, 2014


The NSE ASI lost 3.63% last week on the back of weakness in the banks (-4.62%) and consumers (-2.53%). However, performance was rather mixed across various names. There were losses in the likes of FBNH (N8.98, -9.75%), Seplat (N380.00, -9.52%), Dangote Cement (N170.00, -5.50%) ,NB (N170.99, -0.66%), Nestle (N800.00, -6.98%) and Guinness (N149.06, -5.66%). The top performers included Mansard Insurance (N3.72, +18.10%), PZ (N31.89, +11.89%) and Ashaka Cement (N24.60, +8.37%). Market turnover was once again on the quiet side with a few crosses in selected names heavily dominating the sessions.


The Kenyan NASI reached an all-time high of 166.5points (+2% for the week) on the back of strong foreign buying in the large caps. The NSE 20 ended the week up 60bps while turnover was also an impressive $61.6m for the week. The most active stock was actually Centum as it saw a chunky local cross in the name. In normal trading we saw strong foreign buying in all the blue chips which drove these names higher. KNCB and Equity Bank closed up 90bps and 1.5% at KES58.50 and KES50.50 respectively. Safcom gained a massive 7.2% to KES14.90 after touching a high of KES14.95 while EABL closed up 5% at KES318 and ended the week with strong bids. There was also a strong gain of 9.7% in KNAL (KES9.05).


The Industrials index shed 1.8% last week mostly on the back of losses in Delta (-2.66%, 109.99c) and Econet (-5.66%, 65c) while this was partially offset by a gain of 1.66% in Natfoods. Turnover finally showed some signs of life as total turnover for the week amounted to $13.13m as foreign investors returned to the market. There was also a large trade in Dawn (both sides local) which was to the tune of $5.69m. A large factor currently casting a shadow over the ZSE is the new CSD rules which are seen as rather punitive by many investors.


A quiet week in Port Louis as the Sem-10 closed the week down by 20bps. This week we have a holiday on Wednesday for elections while on Thursday the market closes for a half day.

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