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Africa investor Ai40 Weekly Commentary – 03 July 2017

By David | July 3, 2017

The Ai40 Investor’s Index returned into positive territory last week and was buoyed by a handful of banking stocks from across the continent. The Index gained 1.46 points (or 1.53%) from its last reading of 95.09, to close Friday at a value of 96.55.

On the global front, US stock markets closed largely higher, recording robust first half gains. According to CNBC, “the Dow and S&P posted their best first-half gains since 2009, while the Nasdaq notched its best start to the year since 2009.” For H1 2017, the S&P, Dow Jones and Nasdaq have risen 8.3%, 8% and 14.1% respectively. In Europe, political risk featured in the markets as bourses ended the week lower after reports that a number of British banks had “stopped trading Qatari riyals for retail customers as the diplomatic crisis in the Gulf grows.”

At Friday’s close, the Dow Jones Industrial Average was up by 0.29%, or 62.60 points, to close the week at a value of 21,349.63. The Nasdaq Composite Index was down 0.06%, or 3.93 points, to end the week at a value of 6,140.42, while the S&P 500 was also up by 0.15%, or 3.71 points, to close Friday on a value of 2,423.41.

Gainers
Shares for Anglo American led gains last week with a rise of 9.5%. However, the Gainers list was dominated by banking shares which have repeatedly outperformed other stocks tracked by the Index. From Morocco, Banque Marocaine du Commerce rose 8.7% last week, while Brvm-listed Ecobank Transnational gained 8.2%. In Nigeria, First Bank and Stanbic Bank were up 7.1% and 6.7% respectively. Stocks in Nigeria rallied late last week ahead of half-year earnings according to Reuters.

Losers
AngloGold Ashanti was the Index’s biggest loser last week – falling 6.2% – following reports that the firm may “lay off 30 percent of its workforce as part of restructuring programme” according to Nasdaq. In Kenya, East African Breweries was down 2.4% for the week while Safaricom shares lost 2.3%. In North Africa, Banque Centrale Populaire was down 1.6% and Cairo-listed Commercial International Bank was in negative territory by 1.2%.

Topics: Ai Press Office, All Sectors |