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« Hubert Danso, CEO of Africa investor chairs Co-Investment Panel at Super Return Africa | Main | Africa investor Ai40 Weekly Commentary – 12 January 2015 »

Ai40 Weekly Commentary – Two-month review: October to December 2014

By Staff Reporter | January 5, 2015

In the two months review of October to December, the Ai40 Investor’s Index fell by 5.36 points, down from a value of 124.82 in early October to 119.46 by 1 December: the Index therefore toppled by more than 4% over the October to December period, with the top four worst performances recorded by Nigerian companies, which were hard-hit by falling oil prices.

US markets meanwhile hit new highs in 2014 as the economy continued to surge. The S&P 500 closed late December with a gain of 11.39% for 2014, making this the third consecutive year that the market benchmark has risen by more than 10%, according to CNN. The Dow Jones Industrial Average closed up 7.52% for 2014, and the Nasdaq Composite Index ended up 13.4%.

At last Friday’s close, the Dow Jones Industrial Average moved up by 9.92 points, or 0.06%, to end the week at a value of 17,832.99. The Nasdaq Composite lost 9.241 points, or 0.20% to close at 4,726.81, while the S&P 500 was down 0.7 points, or 0.03%, to reach a close of 2,058.20.

Gainers
After the extreme highs and lows of the previous period, North Africa experienced a relatively quiet two months, with only a few standout performances. Egypt’s Orascom Construction has enjoyed a rather spectacular session; the company leapt 43.8% on the Index in the week to November 14. Over the period under review, during which it gained 19.1%, Orascom Construction announced that it would be launching another IPO, pursuing a dual listing in Egypt and the United Arab Emirates.

Elsewhere, Standard Bank was among the top five star performers with an increase in value of 7.3%, and Anglo Platinum surprisingly recorded a none-too-shabby gain of 7.9%.

Losers
As oil prices continued to sink ever lower, Nigeria felt the full effects over the two-month period. Indeed, the top four worst performers all hailed from Nigeria, each recording cringe-inducing losses in the double digits. First Bank Nigeria fared worst, tumbling 31.4%, while Guinness Nigeria did marginally better with a loss of 24.9%. Dangote Cement and Guaranty Trust Bank suffered losses of 24.2% and 22.5% respectively.

Global oil producer Sasol was the other big loser during the period. In response to the lower Brent crude oil price and the stable rand, the company’s share price dropped to its lowest level in 2014 in late November. It ended the period down 22.0% at a price of US $42.61.

For more on the Ai40 Index, please visit the Africa investor website at www.africainvestor.com.

Topics: Ai Press Office, All Sectors |