Recent Posts

Financial Editors Subscription.

Get the latest company news in your inbox

 

Archives

Categories


« African Infrastructure Investment Awards 2016 shortlist announced by Africa investor | Main | Africa investor co-chairs 9th World Bank-Ai Strategic Dialogue at World Bank Spring Meetings »

Africa investor Ai40 Weekly Commentary – 18 April 2016

By Staff Reporter | April 18, 2016

A week of good news for the Ai40 Investor’s Index and South African stocks especially; all of which enjoyed positive results. The Index climbed to a value of 95.28, which is an increase of 2.47 points – or 2.66% – on last week’s close of 92.81. Anglo American led the pack with an increase of more than a quarter on its value.

US stocks were down at Friday’s close as the price of oil declined ahead of a key weekend meeting of major oil producers in Doha. This weighed heavily on energy stocks. Despite this, all three major indexes were up for the week. The Dow Jones gained 1.8%; its strongest gain in a month.

At Friday’s close, the Dow Jones Industrial Average was down 0.16%, or 28.97 points, to close the week at a value of 17,897.46. The Nasdaq Composite Index also closed down by 0.16%, or 7.67 points, to end the week at a value of 4,938.22, while the S&P 500 fell 2.05 points (-0.10%) to close Friday on a value of 2,080.73.

Gainers
All five gainers at the top of the Index this session were South African. Anglo American posted an incredible gain of 26.4% over the week to take the lead by far. The price jumped as diamond unit De Beers reported a third straight month of higher rough diamond sales. Ahead of the company’s AGM this week, however, a leading investor advisory firm has advised shareholders to reject the remuneration report for Anglo’s executives, saying it was too generous.

MTN Group and Anglo Platinum took second and third position respectively, with gains of 14.4% and 13.7%. Oil and gas company Sasol and Standard Bank, which were at the bottom of the Index last week, took fourth and fifth place. Investors are predicting low risk for Sasol, which was up 11.2%, while Standard Bank, up 8.8% announced on Friday that it has signed a US $1 billion, 36-month, term loan facility in London.

Losers
This week’s worst performer was Togo-based, BRVM-listed Ecobank, which dropped 5.9%. Last week, the bank reported a drop in full-year profits of 73% as economies on the continent struggle. The bank is now reportedly considering a consolidation of its holdings. Nigeria’s Dangote Cement dropped 5.6%. This follows news that contained in the so-called “Panama Papers” – leaked internal data of Panama-based offshore legal services provider Mossack Fonseca – is information regarding secret shell companies allegedly linked to CEO and Africa’s richest man, Aliko Dangote.

Nigerian Breweries and Kenya-based East African Breweries fared little better with losses of 4.4% and 3.4% respectively while Egyptian telecommunications firm Mobinil rounded off the list with a drop of 3.2%.

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

Topics: Ai Press Office, All Sectors |