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African Thoughts: January 11, 2015


Nigeria:

The Nigerian bourse followed global markets lower as the global risk aversion continues to drag down markets. The ASI fell by 5.63% on thin volumes with both the Banks (-4.90%) and Consumers (-9.90%) starting 2016 off where they ended 2015. Banks were dragged lower by the losses on the likes of Skye Bank (N1.18, -25.32%), Unity Bank (N0.85, -24.11%), Fidelity Bank (N1.33, -11.33%) and FCMB (N1.50, -11.24%). The Consumers fell thanks to falls in NB (N109.50, -19.49%), Nestle (N820.00, -4.65%) and Honeywell Flour Mills (N1.73, -15.61%). We expect this week to continue in a similar vein.

Kenya:

The NASI fell by 30bps and the NSE 20 fell by 2.5% as the Kenyan market tracked global markets lower thanks to overall risk aversion. Most of the week was relatively quiet until a large cross in KNCB (local-local) just before the close on Friday bumped up trading volumes. However, both banks had a torrid week with KNCB closing down 5.1% at KES41.50 while Equity Bank fell by 3.8% to KES38.50. This was partially offset by gains in Safcom (+60bps, KES16.40) and EABL (+5.5%, KES288). However, the EABL print is a bit misleading as the stock traded higher on miniscule volumes (local retail investors).

Zimbabwe:

If anyone thought that 2016 would herald in a change of sentiment for the ZSE then that thought was rudely put on halt in the first week as the Industrials fell by 2.34%. As well as global risk asset concerns there were some local issues such as possible changes to the indigenization and economic empowerment framework. Some of the biggest losers included Innscor which lost 19.9% to 24c (although please note that only 209 shares traded in the name in the ENTIRE week!), Delta (-3.51%, 68.02c) and Old Mutual (-2.66%, 198c). Econet was only slightly soft as it closed at 21c (-43bps).

Mauritius:

The first week of 2016 was a slow affair in Port Louis with both the Semdex and the Sem-10 falling by 60bps on thin volumes. MCBG fell by 60bps to Rs207.00 while SBMH close3d the week unchanged at Rs0.71. Of interest was the inclusion of PBL into the Sem-10 with Terra falling out of the sub-index.

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