African Thoughts: August 22, 2016

Nigeria:

The lack of interest in African markets is most evident in the Nigerian bourse as day after day we are witnessing thin volumes. Last week we saw the ASI rise by 1.48% with Banks (+2.14%) and Consumers (+2.63%) closing the week in the green. However, as mentioned, this must be taken with a pinch of salt as volumes were all but non-existent. Major gains were recorded in Unilever (N38.58, +10.23%), Nigerian Breweries (N138.01, +5.75%), 7up (N114.45, +4.97%), Stanbic IBTC (N14.50, +4.32%) and Guaranty (N25.25, +4.12%). Other gainers included Wapco (N56.00, +5.11%), Dangote Cement (N183.00, +1.66%) and Total (N244.00, +2.09%).

Kenya:

The NASI rose by 2% (YTD +70bps) while the NSE 20 climbed by 60bps (YTD -5.9%) last week. There was some increased foreign participation (up to 69%) on the back of a couple of decent block trades although general trading still remains low. The most active name was once again Safcom which once again saw aggressive foreign buying push the name 6.3% higher to KES21.25. The banks also witnessed some trades although endured a mixed week – KNCB closing unchanged at KES32.50 while EqBnk dipped by 1.3% to KES37.75. EABl slipped by 70bps to KES270.00.

Zimbabwe:

Despite the Industrials rising by 24bps last week the index is still down 13.08% YTD as the bourse remains firmly out of favour with foreign investors. Volumes remain woefully low. There was nothing exciting to report.

Mauritius:

The Semdex fell by 1.10% last week while the Sem-10 dropped by 1.59%. Both indices are now slightly in the red for 2016. Dragging the indices lower were the banks with MCBG falling by 40bps to Rs207.75) while SBMH closed down 1.4% at Rs0.70. The only real positive light in Port Louis was Lottotech which rose by 8.2% to Rs4.35 while Hotel stocks were all weak.

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