Stock Exchange of Mauritius slows down before Budget 2015 slated for next month
According to the latest market highlights from Anglo Mauritius stockbrokers, indices continued to plummet, with hotel stocks in particular, New Mauritius Hotels (NMH) and Sun Resorts, having witnessed considerable weakness on the market. (Image: Anglo Mauritius stockbrokers)
The Stock Exchange of Mauritius (SEM) is facing a slowdown with the benchmark index, the Semdex, and the SEM-10 having lost 1.2% and 1.5% to hit 1,994.83 points and 370.94 points respectively over the last week.
According to the latest market highlights from Anglo Mauritius stockbrokers, indices continued to plummet with year-to-date losses of 3.8% and 3.9% in the Semdex and SEM-10 respectively.
Hotel stocks in particular — New Mauritius Hotels (NMH) and LUX Resorts — witnessed considerable weakness on the market last week.
Anglo-Mauritius Stockbrokers have commented on the slowing pace of the market, with the publication of company’s quarterly accounts from mid-February onwards and the presentation of the budget in March being two influential factors causing this regression.
Further, exchange rates have dipped by a whopping 20%, causing buyers to be extra cautions before engaging in any transaction as they search for strong signals from the public and private sector before taking any steps.
On a year-to-date basis, the value of transactions this year stood at Rs 1.03 billion on February 4 against Rs 1.29 billion for the corresponding period in 2014.
The hospitality industry in particular is facing a decline this year to date, as NMH, one of the biggest hotel groups in terms of market capitalization, has declined by 12.2%, while Sun Resorts, another hospitality major, has emerged as the biggest loser with a 18.9% fall in value.
Moreover, the depreciation of Euro against the Mauritius rupee is influencing export revenues and adversely impacting the profitability of companies.
Finally, the quarterly accounts of companies listed on the stock exchange will be made public this month. The analysis of these figures will give an overview of a possible trend.
It is expected that Mauritian banks, in particular, will be under severe pressure. It may be noted that towards December 2014, ratings agency Moody revised the credit ratings of MCB and SBM downwards. MCB and SBM contribute substantially to the turnover of the stock market, being the two dominant banking players in the island economy.
Coming to weekly volumes in the banking sector, MCBG traded mostly at Rs197.50 throughout the week, with a total volume of 139,200 shares traded. SBMH traded on weekly VWAP of Rs1.01 (-1.0%) with a total volume of 16.1 million shares exchanged.
Bramer Banking declined by 0.3% to finish at Rs 5.88, where it saw a significant cross of 600,000 shares exchanged at Rs 5.86.
Financial company CFS, which witnessed several crosses over the week, recouped last week’s losses to close the week at Rs 9.18 (+0.2%), with a total significant volume of 830,700 shares traded.
On the insurance counter, MUA went up further this week by 1.3% to Rs76.00 on 47,400 shares. MEI dropped to Rs 108.75 (-0.5%) with crosses of 30,800 and 25,000 shares traded at that price level.
On the commerce counter, IBL gave up 0.5% to finish at Rs 109.50 with 44,500 shares exchanged overall. Vivo Energy lost 0.5% as well to end at Rs 139.25, with thin volume of 2,100 shares traded.
Moreover, at the level of industrials, Gamma Civic lost some steam this week where it tumbled down to Rs 42.00 (-4.5%) with 4,100 shares traded. PBL remained level at Rs 276.00 with 3,100 shares exchanged. Go Life climbed up to USD0.05 (+66.7%), following its announcement of its planned dual listing on the alternative exchange of the JSE.
The conglomerates that are exposed to the sugar production industry, Alteo and Terra, witnessed further weaknesses this week, decreasing by 2.9% to Rs 30.10 and 2.3% to Rs 30.30, with 23,800 shares and 178,700 shares respectively exchanged.
ENL Land, on the other hand, moved up to Rs 48.50 (+2.1%) with 145,200 shares traded. Several crosses were exchanged over CIEL Limited this week, whereby the stock even saw 3.8m and 600,000 shares respectively traded at Rs 7.10 yesterday, but fell to close at Rs7.00 (-1.4%) on a significant cross of 732,800 shares.
Following its recent rally last month, Rogers gave up further steam this week to even reach a low of Rs 28.00, but picked up momentum to conclude at Rs 28.70 (-1.0%) today, with a total volume of 186,500 shares exchanged overall.
Finally, Fincorp edged up to Rs22.10 (+0.5%) with 119,800 shares traded. Other movers on the investment counter were MDIT (-2.1%), PAD (-1.1%), Policy (-4.0%), Rockcastle (+5.1%) and United Docks (-1.6%).