African Thoughts: June 12, 2017


The Nigerian bourse continued full steam ahead with the ASI gaining a further +6.07% this week as the relaxed FX controls continue to have a positive impact on investor sentiment. The move higher was driven by both banking stocks and consumer stocks as the sectors gained +4.91% and 3.86% respectively. It was an average week from an activity point of view with crosses in the major banking stocks driving proceedings.


The market managed to creep into positive territory for the week in Kenya with the NSE 20 Index gaining +0.13%thanks to a positive move in market heavyweight Safcom with the telco gaining +1.11% while the two major banking stocks ended the week mixed with KNCB closing unchanged and EQBNK falling -0.64%. Brewing giant EABL managed to gain +1.25% for the week. It was an average week on the turnover front with total value traded amounting to $33.34m as Safcom completely dominated proceedings.


It was another impressive week on the performance front in Zimbabwe as the Industrial Index gained an impressive +5.84%, taking the YTD gain to +23.01%, as local investors continue to drive the market higher. There were some Solid gains in the likes of Delta (+12.45%), SeedCo (+8.91%) and Innscor (+8.5%). It was also a very active week with turnover amounting to $13.56m, but this should however be taken with a pinch of salt as Econet accounted for 68% of total value traded.


The market continued to impress in Mauritius with the Semdex gaining +0.50%, taking the YTD gain to +15.41% thanks to SBMH (+3.9%) and MCBG (+1.0%) as foreign demand drove the banking stocks higher. It was a mixed bag for the hoteliers with NMH gaining +0.2%, LUX closing unchanged and SUN falling -0.7%. It was a relatively active week on the turnover front with total value traded amounting to $6.46m as Rockcastle and MCBG together accounted for 55% of turnover. May monthly tourist arrivals increased +6.4% y/y to 547,671 visitors.

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