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AfricaMoney | August 20, 2017

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Stock Exchange of Mauritius sees indices dip as banking stocks disappoint

Stock Exchange of Mauritius sees indices dip as banking stocks disappoint

The Stock Exchange of Mauritius closed lower last week, with the broader Semdex dipping 1.2% to hit 1952.0 points and the SEM-10 down by 1.7% to 369.6 points, as dominant market players, financial service majors MCBG and SBMH reported a decline of 2.1% and 1.5% respectively.(Image: freevector.com)

The Stock Exchange of Mauritius saw its indices end last week on a negative note with the broad equity index, the Semdex, decreasing by 1.2% to hit 1952.0 points, while the blue chip index, the SEM-10 index, also declined by 1.7% to close at 369.6 points.

Overall, the SEM recorded a total turnover of Rs 145.2 million for the week ended Friday 29 May 2015.

Dominant market player and financial services major MCB Group Limited posted a drop of 1.5% to close at Rs 202.00 on Friday 29 May 2015, which prompted the market to end the week at lower levels.

Other components of the SEM-10 depicted that the banking sector’s overall performance was negative, with the decline in the value of MCB shares being followed by the drop in value of SBM Holdings Ltd by 2.1% to close at Rs 0.93.

In the investment cluster segment, a downward performance was noted  with CIEL Ltd declining by 7.3% to end at Rs 6.86, which demonstrated a reversal in its stock market fortunes compared to last week’s hike of 7.3%.

Moreover, besides CIEL, Terra Mauricia Ltd also ended the week on a negative note with a drop of 1.6% in share price and ENL Land Ltd posted a negative performance with a  3.3% dip. Other investment stocks in the SEM-10, namely Alteo Ltd and Rogers & Co. Ltd, declined by 0.8% and 1.6% respectively.

In the hospitality cluster, Lux Island resorts continues to pursue a positive trend since the release of sound financial results, and most recently, with TripAdvisor awarding four of its Hotel with the Hall of Fame award. Accordingly, the overall positive sentiment around the company led to an increase of 1.2% for its stock to close the week at Rs 61.75.

However, hospitality major New Mauritius Hotels Ltd which owns the Beachcomber brand in Mauritius, saw its value remaining flat at Rs 62.75 and, in the commerce cluster, Ireland Blyth Limited posted a flat performanc as well.

Coming to the top three performers of the week, Promotion and Development Ltd gained 5.2%, followed by Innodis Ltd’s gain of 4.9% and ENL Land Ltd preference shares saw a rise of 4.7%.

On the downside, the weakest performances on the bourse were logged by CIEL Limited, United Basalt Product Ltd and Mauritius Union Assurance Ltd, which recorded decreases of 7.3%, 6.7% and 3.8% respectively.

On the Development and Enterprise Market (DEM), the Demex posted a negative performance as well to end the week at 203.98 points with a 0.7% drop  over last week, mainly attributed to the fall in value of Hotelest Ltd shares.

During the week, major market news came in the form of the communique of MCB Group Ltd. The latter has made an application to the Bank of Mauritius to transfer the assets and liabilities attached to 4,500,000 floating rate subordinated notes, which are due in 2023, to its ultimate holding company MCB Group Limited. Consequently, MCBG will seek the necessary regulatory approvals for the listing of the notes on the official market of the Stock Exchange of Mauritius. This is part of the MCBG broader plan to strengthen its capital base for future business growth.

Finally, it is to be noted that the New Mauritius Hotels Ltd got the green signal from its shareholders for its financial re-engineering exercise through issue of bonus and right shares.

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