Ai40 Weekly Commentary – 15 July 2013

15-Jul-2013

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Brian has held positions with a variety of financial services companies, including Cantor Fitzgerald and FTI Consulting. An avid traveler and investor, Brian enjoys scouring emerging and frontier markets for hidden gems (Oxstones). Brian holds an M.B.A. with a concentration in finance from Georgetown University and a B.A. in economics and political science from Rutgers University. He also completed graduate studies in international management at the University of Oxford, Trinity College.







By Staff Reporter | July 15, 2013

After weeks of loss, the Ai40 Index can finally celebrate a gain this week. The Index moved up by a not unsubstantial 2.32%, or 2.52 points, to close the week on a value of 110.93, up from last week’s 108.41.

US markets moved in record territory, with the three major indices trading at about 0.5% below the all-time trading-day highs that were reached in May. Friday’s close saw the Dow Jones Industrial Average up by 3.38 points. The index therefore gained 0.02% to reach a value of 15,464.30. The tech-heavy Nasdaq jumped by 21.78 points, or 0.61%, to close at 3,600.08, while the S&P 500 moved positively by 5.17 points, or 0.31%, to reach 1,680.19 points.

Gainers
In contrast to last week, South Africa finally recorded a good week, taking three of the five spots on this week’s winners’ list. Sasol and MTN Group recorded sturdy gains of 8.1% and 7.9% apiece to reach respective prices of US $45.16 and $19.05. Anglo American can perhaps breathe a little easier as the company saw a jump of 6.7% to reach $19.66. The company’s platinum arm reported that first-half profit almost doubled from the previous year as the rand weakened against the dollar and costs were lowered.

Barclays Bank Kenya topped the list this week with a 9.5% gain, while Lafarge of Morocco will surely be glad to finally move off the list of losers. The company recently announced the appointment of a new executive: Malika Youssoufine will be filling the post of sustainable development manager.

Losers
North Africa’s markets dominated the bottom positions this week, despite the positive movements for Egyptian companies last week. The high is clearly over despite the swearing in of Mohamed El Baradei, a former United Nations official, as Egypt’s vice-president on Sunday. Tunisia’s Poulina Group Holdings and Morocco’s real estate group CGI saw losses of 1.7% and 1.9% respectively, while two Egyptian giants, Commercial International Bank and telecommunications firm Mobinil, recorded drops of 2.6% and 5.0% apiece.

Rounding off the list this week, perennial good performer Ecobank saw a hefty loss of 6.6%. According to Business Day, the Togo-headquartered bank is about to open its first branch in South Sudan and is also awaiting full banking licences in Mozambique and Angola.

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


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