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Africa Financial Market Report – 31/10/2016 – Nimed Capital Limited

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ETI emerges as best performing share on Ghana Stock Exchange: Ecobank Transnational Incorporated (ETI) has so far stood out as the best performing stock on the Ghana Stock Exchange in terms of returns to investors. Returns reached 73 percent to investors who bought into the company from January to August. This comes as a surprise to analysts following some challenging times the bank has been experiencing through 2013 to the beginning of this year. ETI really stood out among its peers, as most big companies on the market have seen their value go down substantially on the market. On the other hand, SG-SSB topped the chart in terms of volumes traded on the market, with 4.6 million shares.

Nigeria maintain resilience against the ‘storm’: The Nigerian economy received a confidence boost following reports of the country reclaiming the position of Africa’s largest economy from South Africa. According to the International Monetary Fund (IMF), Nigeria’s GDP currently stood around $415.08 billion in October while South Africa at $280.36 billion, sparking discussions on the nation’s stand against the ‘economic storm’. Oil’s volatility and rising rate hike expectations enticed bearish investors to send the Naira to the lows of N475 against the Dollar in early October before prices staged a remarkable rebound towards N450, currently trading around N460 on the black market exchange.

Dividend at last for Centum investors as firm earns Sh9.9bn in Kenya: Centum Investment has ended a dividend drought for its shareholders that lasted nearly a decade, with a planned payout of Sh1 per share after announcing a double-digit growth in after-tax profit to Sh9.9 billion. The dividend represents a Sh665 million total payout by the firm listed on the Nairobi Securities Exchange. The company had a strong performance during the year and closed in a good liquidity position. We have chosen to recommend the dividend payout as delivering value to our shareholders is our primary focus and the company has sufficient liquidity to fund its deal. As the company has had a no-dividends policy since 2009, providing a means for the company to use funds to make acquisitions. Over the years have seen, the investments have seen asset classes multiply, while its stock value has multiplied nearly seven times.

ExxonMobil discover a billion-barrel oil field offshore Nigeria: Barely a week after it sold its downstream subsidiary in Nigeria, ExxonMobil Corporation, has announced the discovery of up to one billion barrels of oil reserves in the Owowo field, offshore Nigeria. This development helps boost Nigeria’s efforts to increase her crude oil reserves from the current 36 billion barrels to 40 billion barrels’ target, which was set for 2010 but could not be achieved as a result of lack of investment in exploratory activities. ExxonMobil had recently announced the sale of its 60 per cent stake in Mobil Oil Nigeria Plc to NIPCO Plc, thus exiting from the Nigeria’s downstream oil and gas sub-sector.

Africa Markets in Focus

Country 2016 GPD (USD ‘b) 2015 P GDP Growth (%) 2016 P GDP Growth (%) Credit Rating
Ghana 38.171 3.48% 4.53% B-/S&P, B/Fitch
Nigeria 537.966 2.65% 2.32% B+/S&P, BB-/Fitch
Kenya 64.688 5.59% 5.98% B+/S&P, B+/Fitch
Mauritius 11.865 3.37% 3.78% Baa1/Moody’s

Source: IMF World Economic Outlook Database (Apr. 2016), GDP (P- Projected)


Economic Rates

Country 91 Day T-Bill 182 Day T-Bill Inflation (%) Policy Rate (%)
Ghana 22.81% 24.45% 17.20% 26.00%
Nigeria 14.51% 18.68% 17.61% 14.00%
Kenya 7.69% 10.28% 6.34% 10.50%
Mauritius 2.48% 2.65% 1.00% 4.00%

Source: Various Central Banks.


Exchange Rates (Local Currencies against the USD)

Country Year Open 31-Dec-2015 Week Close YTD Change YTD (%)
Ghana 3.8011 3.95899 -0.15789 -4.15%
Nigeria 196.899 315.256 -118.357 -60.11%
Kenya 100.529 99.5768 0.9522 0.95%
Mauritius 34.8304 34.5384 0.292 0.84%

Source: Oanda

Stock Market Performance

Country Year End 2015 Week Close Week Change YTD Return (%)
Ghana 1,994.91 1,710.67 -284.24 -14.25%
Nigeria 28,642.25 27,294.21 -1,348.04 -4.71%
Kenya 145.7 137.04 -8.66 -5.94%
Mauritius 1,811.07 1,815.10 4.03 0.22%

Source: Various Stock Exchanges

Download Full Report: https://nimedcapital.com/nimed-research-weekly-25-jan-2019/

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