African Thoughts: January 27, 2014

Nigeria:

The market managed to close the week higher in Lagos with the ASI gaining 1.08% while turnover increased 15% w/w. The highlight of the week was undoubtedly the MPC meeting which took place last Tuesday. The decision to increase the CRR on public sector funds to 75% shocked the markets with the banking sector going on a rollercoaster ride over the week as the Bank Index eventually closed the week -1.00 lower. Zenith and First Bank were the most actively traded stocks over the week. PZ Cussons Plc released their H1-14 results for the period ended 30th November 2013. Revenue was up by 4.70% y/y to N32.46bn. In other market news, Sterling Bank Plc announced that it’s concluded rights issue recorded a 103.3% subscription.

Kenya:

Despite the fact that foreigners were net sellers to the tune of $7.76m, the market managed to end the week higher with the NSE 20 Index gaining 1.4%. Both the major banks were on the top of the foreign sales list with Kenya Commercial Bank and Equity Bank seeing foreign outflows of $3.69m and 3.22m respectively. East African Breweries was the most active stock as $9.14m worth of shares traded following the announcement of an upcoming commercial paper issue. Safcom’s unbelievable run continued last week with the telco gaining 8.3%to close at an all-time high of KES 12.45, reaching a mid-day high of KES 12.80 on Friday. Banking sector credit growth to the private sector for October increased 18%y/y.

Zimbabwe:

The market came under pressure in Harare last week as the Industrial Index fell -3.68 while the Mining Index fell -8.58%. The Zimbabwean Revenue Authority announced that national revenue collections for 2013 were down 6% y/y. Foreigners were ever so slightly net sellers last week with net outflows totaling $190k as total value traded for the week increased to $9.70m. The usual suspects Delta (52%), Econet (23%) and Innscor (6%) dominated activity on the back of foreign participation.

Mauritius:

The market ended the week lower in Port Louis with the Semdex falling -0.9%. Both major banking stocks came under pressure with MCB falling -1.49% while SBM fell -1.9%. MCB was extremely active on the back of foreign activity as the banking giant dominated activity over the week. The hotel sector ended the week mixed with NMH falling -1.9% while Sun Resorts managed to end the week +2.22% higher.