Africa investor Weekly Commentary – 8 July 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 8, 2013

Despite a surge in Egyptian stocks, the Ai40 Index inched lower once more this week. Down 0.44 points from last week’s value of 108.85, the Index saw a drop of 0.4% to reach 108.41 points.

US markets closed higher last week as a positive jobs report eased jitters around the tapering off of quantitative easing later this year. The government reported that US payrolls grew by 195,000 jobs last month, which was more than had been expected. However, the unemployment rate continues to languish at 7.6%.

Friday’s close saw the Dow Jones Industrial Average gain 0.98%, or 147.29 points, to reach a value of 15,135.84. The Nasdaq gained 35.71 points, or 1.04%, to reach 3,479.38 points, while the S&P 500 eked out a 1.02% gain (16.48 points) to reach a value of 1,631.89.

Egypt dominated the top positions this week. Unrest continues over the ousting of President Mohammed Morsi last week Thursday, which prompted a sharp rise in the country’s stock market. The benchmark EGX-30 Index closed 7.3% higher at 5334.54, reflecting widespread hopes that a friendlier business environment will be the result of Morsi’s departure.

Telecommunications firm Mobinil took the top spot, with a massive leap of 26.8% to reach a price of US $16.55. Commercial International Bank wasn’t far behind with a healthy jump of 21.1%. Real Estate Firm TMG Holdings and Telecom Egypt took third and fourth position with gains of 15.0% and 10.8% respectively.

The only non-Egyptian stock on our list of gainers this week was Nigeria’s Guaranty Trust Bank, which gained 6.8% to reach a price of $5.67.


Morocco and South Africa shared the losers’ list this week. The week’s worst performer was AngloGold Ashanti, which took a tumble of 8.8% to reach a price of $12.74. As the price of gold continues to slide, the company has had to heavily reduce numbers at its head office in Johannesburg as it looks to realise significant savings in its corporate and operating costs.

Morocco’s Lafarge continues its stay on the list of losers, having closed down by 6.5%. It is joined this week by Douja Prom Addoha, which lost 5.3%. South Africa’s Standard Bank and Anglo Platinum rounded out the list with losses of 5.5% and 5.4% respectively. According to BDlive, the JSE slumped on Friday’s close after “better than expected US employment figures underpinned the dollar and put commodity prices under pressure.”

For more on the Ai40 Index, please visit the Africa investor website at

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