Ai40 Weekly Commentary – 29 July 2013


I like this.


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 29, 2013

The fortnight under review has seen the Ai40 Index drop slightly. July 15 saw a value of 110.93, which therefore sees the Index down by 0.4 points, or 0.36%, on a value of 110.53.

US markets were quiet at Friday’s close, but stocks inched higher in the final minutes of trading after trading down earlier in the day. Friday’s close saw the Dow Jones Industrial Average gain 3.22 points, or 0.02%, to reach an index value of 15,558.83. The Nasdaq moved up 7.97 points, or 0.22%, to reach a value of 3,613.17, while the S&P 500 increased by 1.4 points, or 0.08%, to reach 1,691.65.


South Africa’s main mining stocks finally had a good two weeks on the markets. Anglo Platinum topped the list with a 15.6% gain, which sent its price to US $33.87. Anglo American trailed with a 9.5% gain and AngloGold Ashanti recorded a gain of 4.7%.

While Anglo Platinum, the world’s biggest producer of the metal, reported that profit for the first half almost doubled from a year earlier after the rand weakened against the dollar, Anglo American on Friday reported a fall in interim profit, although this was in line with expectations. According to the company, outlook for commodity prices remains volatile. AngloGold Ashanti meanwhile has responded to diminishing cash flows by offering a $1.25 billion bond issue which has since been three times oversubscribed.

Egypt’s Abu Kir Fertilisers recorded a 4.6% gain, while Kenya Commercial Bank rounded off the winner’s list with a 4.4% gain.

Nigeria was the biggest loser this session as three companies hailing from that country took the three lowest positions on the Index. Brewing giant Nigerian Breweries lost an unfortunate 8.8% to reach a value of $1.45 per share. This despite reporting that half-year gross profit climbed 3.8% to N29.6 billion ($183.5 million), as compared to the N28.5 billion ($176.6million) recorded in the same period last year.

Zenith Bank and Guaranty Trust Bank didn’t fare much better. The two companies lost 6.9% and 6.4% respectively. According to ThisDay, “The significant earnings growth recorded by Nigerian banks in 2012 may be challenged this year following an anticipated lower yields outlook for fixed income securities as well as increasing cost in the industry.”

Two telecommunications companies filled out the week’s worst performers: South Africa’s MTN Group and Morocco’s Maroc Telecom lost 5.3% and 4.5% respectively.

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

Tags: , , , , , ,

Post a Comment

Your email is never published nor shared. Required fields are marked *


Subscribe without commenting