African Thoughts: November 07, 2016

Nigeria:

Activity on the Lagos bourse remains woefully inadequate with turnover barely cracking $4m on any particular day. The lack of interest also continues to drive the ASI lower day after day – last week the ASI fell by 1.15% thereby extending the YTD loss to 5.80%. Both Banks (-3.22%) and Consumers (-27bps) ended the week lower. ETI (N9.81, -6.57%) led the losers chart in the Banking index followed by Guaranty (N22.57, -5.37%) and Access (N5.55, -2.63%). Losers in the Consumer index were 7up (N150.86, -5.00%), Cadbury (N12.95, -4.78%), NB (N142.00, -2.74%) and UACN (N18.60, -0.43%). The risers were Okomuoil (N47.00, +14.63%), PZ (N18.00, +9.09%), Guinness (N84.00, +5.00%) and Nestle (N814.97, 3.03%).

Kenya:

It was an extremely quiet week in Kenya although the NSE20 (+1.8%) did find some buying interest. However, the index is still down 19.3% YTD. The bulk of the action took place in Safcom as the telco rose by 6.8% to KES21.25 after releasing 1H17 results on Friday. Equity Bank (unch, KES30.75) ended the week unchanged after releasing 3Q16 results on Thursday. The other big gainer was KNCB which rose by 6.5% to KES28.75 ahead of anticipated 3Q16 results due out on Tuesday 8 November. The rest of the market was extremely quiet.

Zimbabwe:

After its strong recent bull run the Industrials (-10bps) finally started to retreat on the back of profit taking in select names. The index is now +4.78% for 2016. During the week we saw a number of results releases, among them was Econet which showed a 7% dip in revenues. This drove the stock price of the telco lower by 10% to 27c. Delta inched marginally higher to 73c.

Mauritius:

The Semdex fell by 61bps last week which now makes the YTD loss 39bps. Activity was rather dull in Port Louis while we saw mixed performances in the banks – MCBG rose by 50bps to Rs218.00 while SBMH fell by 90bps to Rs6.84.

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