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Africa investor Ai40 Weekly Commentary – 25 April 2016

By Staff Reporter | April 25, 2016

Another week of gains has seen the Ai40 Index climb to a value of 96.81; a jump of some 1.53 points on last week’s value of 95.28, or +1.6%. Losses were minimal this week while gains from a rampant Anglo American (its second straight week on top) and a rebound from MTN Group helped push the Index into another positive week.

US stocks ended the week mostly flat as investors got wind of the fact that the earnings season is faring pretty poorly so far. Shares in both Microsoft and Alphabet were down on Friday, dragging the Nasdaq into a negative performance. Concerns over the US manufacturing performance also weighed heavily on major indexes as activity shrank in the first month of the second quarter.

At Friday’s close, the Dow Jones Industrial Average was up 0.12%, or 21.23 points, to close the week at a value of 18,003.75. The Nasdaq Composite Index closed down by 0.80%, or 39.66 points, to end the week at a value of 4,906.23, while the S&P 500 was almost unchanged (0.00%, or a gain of just 0.10 points) to close Friday on a value of 2,091.58.

Gainers

Anglo American spent its second-straight week at the top of the Index. Although the company reported that production fell or remained flat at most of its mines, production figures are in line with previous guidance. It was up 10.7% for the week. Egypt’s Commercial International Bank (CIB) was in second place with a gain of 8.0% as a judgement announced this week will now allow CIB to proceed with the completion of a deal to sell CI Capital to Egyptian businessman Naguib Sawiris.

Egyptian real estate firm TMG Holding took third place this week with a gain of 7.1%, followed by Nigeria’s Zenith Bank and South African-listed telecoms firm MTN Group, which jumped 6.5% and 5.6% respectively. MTN Group has seen its Nigerian subscriber base decline by 6.9% in the first quarter of 2016, following recent subscriber registration requirements.

Losers
Egyptian stocks have surged to an eight-month high as expectations rise over a possible second devaluation of the country’s currency. Despite this, Egypt’s Abu Kir Fertilizers was the week’s worst performer, dropping 3.1%. Guinness Nigeria fared slightly better with a loss of just 1.5%. The brewer’s profits have tumbled in the midst of Nigeria’s economic downturn. The company announced that profit fell 83% in the nine months through to the end of March.

Morocco’s Attijariwafa Bank and Banque de Tunisie followed with 0.7% and 0.6% in losses respectively while Ghana-listed Tullow Oil rounded off the losers’ list with a drop of 0.6%. The beleaguered Anglo-Irish exploration company has seen its shares fall 85% in the past four years and has racked up debt of about US $4 billion.

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

Topics: Ai Press Office, All Sectors |