African Thoughts: November 28, 2016

Nigeria:

The ASI fell by another 80bps last week as the complete and utter lack of interest continues day after day. Volumes also remain at all-time lows on the back of this lack of interest. We actually did see marginal upticks in both the Banks (+2bps) and Consumers (+42bps) although once again, please do not read anything in to this as it is on the back of extremely thin volumes.

Kenya:

The NSE 20 (-80bps) retreated for the first week in five weeks with market turnover also severely reduced. As usual, Safcom (-50bps, KES19.90) was the most active stock as it accounted for almost 60% of the total activity. There was also some reasonable action in the 2 banks with both of them weak – Equity Bank falling by 5.5% to KES 30.25 while KNCB dipped marginally lower to KES30.50.

Zimbabwe:

The Industrials continues along its rampant run as it gained a further 4.19% (YTD +14.63%) last week. As has been the case in recent weeks/months most of this demand is driven by aggressive locals ahead of this week’s introduction of the new bond notes. Both Delta (+6.23%, 81c) and Econet (+5.36%, 29.5c) had strong weeks.

Mauritius:

The Semdex fell by 88bps last week which now drags the performance into negative territory (-35bps) for the year. The fall can mostly attributed to some softness in the banks, with the major 2 banks also accounting for the bulk of trading last week. MCBG closed down 90bps at Rs214.00 while SBMH fell by 1.4% to Rs6.90.

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