African Thoughts: October 27, 2014


It was a rather slow week in Lagos as turnover fell -28.15% to $103.11m with block trades in GTB and Zenith dominating proceedings. The banking sector managed to stage a rally after an absolutely torrid time the previous week with the Index gaining a rather pleasing +3.65% with some solid gains in the likes of UBA (+6.99%), Zenith (+5.56%), FBNH (+4.41%) and GTB (+2.63%). Consumer stocks (+0.75%) managed to close the week in positive territory with gains in Dangote Sugar (+9.22%), NB (+2.75%), Nestle (+1.94%) and Guinness (+1.11%) lifting the sector. GTB released Q3 2014 results which saw PAT fall -3.61%. NB also released Q3 2014 numbers with PAT falling -56.41%.


The market came under some pressure in a shortened trading week with the NSE 20 Index falling -1.6% while turnover also fell -53% to $24.3m with foreign participation standing at 53.2%. KNCB closed the week -2.6% lower but managed to have the highest net foreign inflows of $735k while Safcom had the highest net outflows of $1.2m. The rally in BATK continued as the name reached a new all-time high of KES 1,030 on the back of foreign demand. KPLL had a stellar week with the counter gaining +10% after releasing FY 2014 numbers which saw EPS gain +87.4%. Britam was one of the weeks biggest losers and closed -10.6% lower. According to real estate consultancy firm, Hass Consult, the average house sale prices increased +3.1% q/q (+4.7% y/y).


The market continues to take strain in Harare as the Industrial Index fell -3.11% taking the YTD loss to -9.51%. Losses in market heavyweights NatFoods (-6.67%) and Innscor (-5.8%) dragged the market lower. It was rather slow going as well as turnover fell -27.18% to $3.72m with foreign participation falling to 49%. Activity was driven by the usual suspects Econet (29%), Innscor (26%) and Delta (21%).


A rather average week from an activity perspective in Port Louis as turnover amounted to $6.8m with foreigners being net sellers to the tune of $1.49m. Large crosses in MCBG (38% of weekly turnover) towards the end of the week helped boost turnover. Banking stocks ended the week mixed with MCBG falling -0.9% (Rs209.00) while SBMH closed unchanged at Rs1.04. Hoteliers managed to close the week higher with NMH gaining +0.57% while LUX gained +2.3%.

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