African Thoughts: December 15, 2014


Nigeria:

A tough week in Lagos with the ASI getting a real hammering as the index fell by 7.42%. There was some heavy selling in both the banks (-7.23%) and consumers (-10.08%). The banks were hit lower by the likes of GT Bank (N22.49, -6.29%) and Access Bank (N6.13, -13.30%). Likewise, the NSE Consumer Index was down by 10.08% for the week, dragged lower by Flour Mills (N43.73,-9.74%) and Dangote Flour (N4.84,-14.03%). Other notable losers for the week included Transcorp (N3.05,-23.56%), Mansard (N2.90,-22.04%) and UBA (N4.08, -14.29%).

Kenya:

The NSE 20 shed 1.2% while the NASI fell by 1.8% for the week. Foreign participation was also at a healthy 67% although total turnover fell by 27% compared to the previous week. As usual, the 4 most active stocks were the 4 big names although all of these ended the week in the red. Safcom was the worst hit as it lost 5.1% to KES14.05 despite touching levels above the KES15 mark earlier in the week. EABL closed down 90bps at KES315 while both the major banks lost ground as well. EqBnk closed at KES50.00 (-1%) while KNCB closed at KES58.00 (-90bps).

Zimbabwe:

The Industrials lost yet more ground last week as it slipped by 61bps (YTD -17.21%). Volumes still remain on the thin side although some interest did appear to return from foreign investors, on both sides of the market. There were losses in the likes of Econet (-3.08%, 63c), Delta (-90bps, 109c) and Innscor (-3.33%, 58c).

Mauritius:

It was a rather dull week on the Semdex with most of the focus on the general elections which took place on Wednesday. The market was closed on Wednesday while Thursday was only a half day. The election results came out on Friday which showed a clear win in favour of a new Government under the Coalition Alliance Lepep with Sir Anerood Jugnauth as the Prime Minister. In the market we saw MCBG close down below the Rs200 level for the first time in a long while (Rs199.00). We also saw some news out about tourist arrivals which saw Nov witnessing a 5.6% from European markets.

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