African Thoughts: May 11, 2015

Nigeria:

Not much to write home about as activity was lackluster throughout the week. The NSE ASI declined by 92bps to 34,388.12 points on the back of losses in FBNH (-7.14%, N9.10) and Forte Oil (-8.24%, N963.01). Gains in the likes of ETI (+18.31%, N24.49) and Fidelity bank (+3.23%, N1.92) steered the Banking index into positive territory to close up by 2.02%. On the contrary the Consumer index declined by 2.52% due to losses in Guinness (-5.55%, N160.56), NB (-2.24%, N153.50) and Nestle (-5.26%, N900). Nestle, GTB and Zenith Bank were the most actively traded names this week contributing $20m, $10m and $10m towards turnover respectively total turnover was $100m. In company news, UBA signed a N4bn agreement to finance the Egboama Gas plant, Lafarge made a PAT of N8.6bn in Q1-15 (+15% y-o-y), Dangote Sugar reported a revenue of N22.4bn Q1-15 and PBT of N3.8bn and Stanbic IBTC announced that it will raise N24bn from a rights issue once shareholders approve.

Kenya:

The NSE 20 was hobbling along throughout the week to close down by 0.4%. Large caps didnt help matters with most of them closing soft. Safaricom, KCB and Equity Bank shed 2.0%, 3.2% and 5.6% to close at KES17.05, KES60.50 and KES46.50 (all-year low) respectively. Foreign divestment continued in the market as foreigners recorded a net outflow of $9.5m- foreigners were mainly selling Safaricom for the second consecutive week (net outflow of $7.8m). Notable top gainers included Britam (+12.5%, KES24.75), Standard group (+11.4%, KES39) and Uchumi (+6.4%, KES10.75).

Zimbabwe:

The industrial index closed the week 1.45% lower at 154.00 points. Losses were registered in Econet and Innscor losing 5.12% and 0.02% to land at 46.49c and 59c respectively while Delta closed unchanged at 105c. Other notable losers included BAT (-5.17%, 1100c), Natfoods (-5.06%, 300c) and Seedco (-1.05%, 94c). Weekly gainers included small caps ART (+100%, 0.60c) and Star Afric (+40%, 140c) whilst resurgent demand in OK Zim caused the name to close higher at 11c (+10%).

Mauritius:

The Semdex closed the week unchanged at 1,955.83 points. The Banking duo, MCBG and SBM dominated the weeks proceedings accounted for 77% of total turnover. The counters closed up by 1% and 0.2% at RS203.25 and Rs0.94 respectively. The week saw panic selling in Air Mauritius (MK) in the wake of media reports suggesting the company is virtually insolvent. The name shed 17% to settle at Rs11.04. The leading stocks included MAU (+8.1%, Rs80), Anglo (+4.7%, Rs890) and SWAN (+4.3%, Rs360) whilst the laggards included GOLI (-25%, Rs0.03), SODIA (-5.7%, Rs0.33) and ASL (-4.3%, Rs42).