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« Africa investor Ai40 Weekly Commentary – 21 November 2016 | Main | Africa investor Ai40 Weekly Commentary – 5 December 2016 »

Africa investor Ai40 Weekly Commentary – 28 November 2016

By David | November 28, 2016

It was yet another rocky session for the Ai40 Index as it dropped in value for the third week in a row. Africa’s “big three” – South Africa, Nigeria and Egypt – featured heavily in both the gainers and losers lists and this held true for banking, telecoms and mining stocks. The index closed the session with a loss of 1.78 points, or 1.95%, from last week’s value of 91.13. It closed the week at a value of 89.35.

In global markets, equities in the US closed up on Friday posting a three week winning streak. In recent weeks, stocks in the US have consistently posted record highs on the back of President-elect Donald Trump’s policy promises. The US dollar, however, pulled back against major currencies. Elsewhere, Japanese stocks remained buoyed by a lower yen, Britain’s FTSE 100 was nearly flat last week following a report which “indicated that the government’s borrowing needs may be larger than expected over the next five years” according to USA Today. On Friday, oil prices fell as sentiment grew that OPEC (Organization of the Petroleum Exporting Countries) producers would not be able to come to an agreement on capping production.

At Friday’s close, the Dow Jones Industrial Average gained 0.36%, or 68.96 points, to close at a value of 19,152.14. The Nasdaq Composite Index picked up 0.34%, or 18.24 points, to end the session at 5,398.92. Similarly, the S&P 500 gained 0.39%, or 8.63 points, to close Friday on a value of 2,213.35.

Gainers
This session, banking stocks took the lion’s share of the gainers list, however, it was South African mining firm Anglo American which topped the list with an increase of 8.7%. The gain came after renewed optimism about the miner’s De Beers business. Vodafone Egypt stock found some decent footing after suffering massive losses last session, the stock closed up by 3.3%.

Moving to the banks; Nigerian based Guaranty Trust bank and First bank increased by 3.0% and 1.2% respectively. Bvrm-listed Ecobank Transnational gained a modest 0.5%.

Losers
This week, the stock for Abu Qir Fertilizers (an Egyptian chemicals company) fared the worst as it suffered a 15.9% loss. South African mining company AngloGold Ashanti dropped by 8.6%, as investor sentiment points to the end of “a rally that drove stocks to multi-year highs” according to Colin McClelland on IOL. Orange Egypt, a telecoms provider, fell out of the gainers list from last week and closed out the session with a 7.9% drop.

The stock for Stanbic IBTC Bank of Nigeria lost 6.8% while Commercial International Bank of Egypt (the largest private-sector bank in that country) was down 6.0%.

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

Topics: Ai Press Office, All Sectors |