Mauritius: Low investor confidence pulls down stock exchange
Decliners pushing the Sem-10 index down were mainly financial services major SBM Holdings Ltd, which dipped by 5.2%, followed by New Mauritius Hotels and ENL Land Ltd where decreases of 3.2% and 2.0% respectively were recorded. (Image: kstationchicago.com)
The island economy’s stock market ended on a negative note last week with the broad equity index, the Semdex, which reflects the official market performance, going down by 1.0% to close at 1943.01 points, as investor confidence continued low following the deep-rooted Ponzi scheme in excess of Rs 25 billion unearthed at the start of the month.
This lackluster performance of the Semdex was followed by the index capturing the ten largest companies, the SEM-10, which dropped by 1.3% to end last week at 367.32 points.
Bluechip stocks of the SEM-10 delivered a mixed performance, with the MCB Group and Terra Mauricia Ltd posting a flat performane while Alteo Ltd and CIEL Ltd inched up by 0.8% and 0.9% respectively, followed by Lux Island Resorts Ltd which rose 0.9%.
However, even as financial services major MCB held steady, the island’s second largest financial services group, SBM Holdings Ltd, was among the major decliners, plunging by 5.2% to close at Rs 0.91 on Friday 17 April 2015. The other negative performers were ENL Ltd, Ireland Blyth Limited, New Mauritius Hotels Ltd and Rogers & Co. Ltd which dropped by 2.0%, 0.4%, 3.2% and 1.4% respectively.
Conversely, the top three gainers on the Mauritian bourse were Compagnie des Magasins Populaires Ltée (CMPL), which inched up by 10.0% to close at Rs 17.60, followed by Caudan Development Ltd, which gained 6.1%, and Mauritius Chemical & Fertilizer Industry Ltd, which climbed up by 8.4%.
The worst three performers were Gamma Civic Ltd, which plunged by 7.0%, followed by Harell Mallac Ltd, which declined by 5.1 % and finally, SBM Holdings Limited Ltd, which fell 5.2%.
Major market news during the week was the communiqué of Mauritius gaming major Lottotech, which indicated that the government has not communicated any intention of taking control of the company, as some press articles had recently speculated. Moreover, following the successful completion of a due diligence exercise, Alteo’s subsidiary, Sucriere des Mascareignes Ltd, will acquire 51% share in Transmara Sugar Company of Kenya. Accordingly, a binding share purchase agreement has been signed with the seller.
Finally, market capitalization on Friday, 17 April 2015, stood at Rs 216 billion, volume traded came to Rs 26 million and the figure for value traded on the official market was Rs 39 million.