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« Africa investor Ai40 Weekly Commentary – 17 July 2017 | Main

Africa investor Ai40 Weekly Commentary – 24 July 2017

By David | July 24, 2017

Last week the Ai40 Investor’s Index continued on a bull run to reach another record high for the year. The upward push was largely driven by telecoms and banking stocks. Meanwhile, Nigerian-listed equities tracked by the Index continue to underperform. The Index gained 0.96 points (or 1%) from a previous close of 96.77 to end Friday at a year-high 97.73.

In US markets last week, stock indices ended the week marginally lower as investors continued to digest corporate earnings reports. On the global front, “stock markets were mostly lower on Friday as investors assessed the outlook for central bank policies.” In oil markets, volatility returned to the fore after “a tanker-tracking firm reported supply from OPEC is rising” according to CNBC. On Friday, oil prices were down over 2% as a barrel of WTI traded at $45.77.

At Friday’s close, the Dow Jones Industrial Average fell by 0.14%, or 31.71 points, to close the week at a value of 21,580.07. The Nasdaq Composite Index dropped 2.25 points, to end the week at a value of 6,387.75. The S&P 500 closed the week lower by 0.91 points, to close Friday on a value of 2,472.54.

Gainers
Orange Egypt – the Cairo-listed telecoms firm – was the Index’s best performer for the second week running. The company’s stock gained 21.6% last week. The firm met with the Egyptian communications Minister last week and was tapped to increase its investment in the country. Telecom Egypt also featured on the Gainers List with an increase of 6.5%.

Elsewhere on the continent, shares for Standard Bank rose by 6.4%, while Equity Bank’s stock appreciated by 4.6%. Still in the banking space, Banque de Tunisie enjoyed a 4.4% increase.

Losers
For the third review in a row, Nigerian stocks continue to dominate the Losers List. Once again, the worst performer was First Bank which fell by 5.4%. Guaranty Trust Bank shares were down 2.4%. Last week the Federal High Court in Nigeria ordered seven banks to remit $793 million to the government. According to Premium Times Nigeria, “the money was allegedly hidden with the banks in violation of the Federal Government’s Treasury Single Account policy.” Still in Nigeria, Dangote Cement shares lost 3.4%.

TMG Holdings, an Egyptian real estate firm dropped 3.4% and Anglo American shares were down 2.3% for the week.

Topics: Ai Press Office, All Sectors |