African Thoughts: May 18, 2015

Nigeria:

Despite the downward trend throughout the week, the NSE closed up 15bps w-o-w on 34,439.52 points, due to gains in 7Up (+8.64%, N176), Forte Oil (+8.64%, N173.23), Caverton (+7.20%, N3.75) and Unilever (+4.72%, N45.03). The Banking index retreated 19bps on the back of losses in the likes of Unity Bank (-14.89%, N2.23) and ETI (-11.96%, N21.56) - there was selling pressure in the name throughout the week. The Consumer index closed up 66bps buoyed by large gains in sector heavies NB (+1.09%, N155.18), 7Up (+8.64%, N176) and Unilever (+4.72%, N45.03). UBA and Zenith Bank were the most actively traded names, contributing $13m and $12m towards total turnover respectively. In economic news, the Central Bank of Nigeria has started talks with banks and currency dealers on how to loosen foreign- exchange trading restrictions while maintaining stability of the Naira.

Kenya:

The bearish trend continued in the market as the NSE 20 index shed 1.8% w-o-w on the back of net selling pressure in large caps Safaricom (-4.1%, KES16.35), KCB (-4.1%, KES58) and EABL (-5.9%, KES302). Equity turnover was rather robust at $66.9m due to solid trading in large caps. Co-op bank registered the highest net inflow ($4.2m) following noticeable block trades in the name whilst Safaricom had the highest net outflow for the fifth consecutive week ($3.6m). BAT recovered well to close up 6.6% at KES774 whilst Britam was amongst the losers to close soft at KES23 (-7.1%).

Zimbabwe:

A general improvement in activity was witnessed this week as the Industrial index closed up 0.02% at 154.03 points. Total turnover improved to a total of $9.9m (a 50.65% increase from the previous week) as African Sun, Delta and Econet were the top contributors, contributing 30%, 25% and 21% respectively. African Sun was the most active counter after 99m shares were exchanged in the name (block trade). Other gainers include ZPI (37.50%, 1.10c) and Innscor (+1.69%, 60c) whilst the laggards included Meikles (-17.65%, 7c), Econet (-0.84%, 46.10c) and Old Mutual (-0.40%, 250c).

Mauritius:

SBM, CIEL and MCB were the most actively traded names as the counters traded a total of 584m, 9.3m and 3.7m shares respectively. The banking duo, MCB and SBM were also the top turnover contributors, contributing a substantial $22m and $15m respectively. The Semdex closed the week in the green with the index closing up 1.03% w-o-w on 1,975.98 points on the back of gains in CIM (+11.6%, Rs9.80), MASC (+11.1%, Rs2) and SUN (+7.8%, Rs42.50). Foreigners were mainly selling MCB, CIEL and NMH and were net buyers in SBM and PBL.