African Thoughts: September 28, 2015


Nigeria:

Activity dropped -34.69% as turnover amounted to $45.49m, but this was as a result of the shortened trading week due to the Eid celebrations. The highlight of the week from an activity point of view was a large cross in Zenith while the rest of the market was very quiet. The market managed to close in positive territory with the ASI gaining +0.69% thanks to consumer stocks with the sector gaining +1.00% with good performances in NB (+2.99%) and Unilever (+1.09%). Banks (-0.66%) closed lower with GTB (-1.56%) driving the sector lower. The Monetary Policy Committee left the Monetary Policy Rate unchanged at 13% while decreased the CRR to 25%.

Kenya:

On the face of it activity increased +13.5% to $26.8m, but this should however be taken with a pinch of salt as a large book over in BATK accounted for a large chunk of turnover and excluding the cross turnover was actually down -31.6%. Foreigners remained net buyers for the fifth straight week and accounted for 61% of activity. The market broke three consecutive weeks of gains and closed lower with the NSE 20 index falling -0.4% with the likes of with ARM (-9.0%) being a major drag on the market. The MPC held the Central Bank Rate at 11.5% as inflation decreased to 5.8% in August (80bps above the 5% target).

Zimbabwe:

Another very slow week in Harare in terms of activity as turnover fell -44.86% to $2.88m as Econet (29%), Delta (24%) and Fidelity (20%) dominated proceedings. The market continues to come under pressure as the Industrial Index fell -1.05%, taking the YTD loss to -18.65%. The Central Statistical Office released inflation figures for August which saw prices fall -0.31% while year on year inflation stood at -2.7%.

Mauritius:

A rather average week from an activity point of view in Port Louis as turnover amounted to $5.1m with most of the activity geared towards MCBG, SBMH and NMH (together accounting for 72% of turnover). The market came under a little bit of pressure with the Semdex falling -0.2% with MCBG (-0.7%) being the major drag on the market.

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