Stock market gains as ENL Land up 9.5% on upcoming merger with ENL Investment
The Stock Exchange of Mauritius ended the week on a positive note with the Semdex and the Sem-10 index gaining 0.4% and 0.7% to hit 1982.50 points and 381.24 points respectively for the trading week ended August 3, 2015, pulled up by positive performance of local conglomerate ENL Land which hit Rs 52.00 upon the upcoming merger of the entity with ENL Investment Ltd.
The Stock Exchange of Mauritius closed the trading week of August 3, 2015 in positive territory, with the Semdex and the SEM-10 indices gaining 0.4% and 0.7% to reach 1982.50 points and 381.24 points respectively.
Total market turnover (TMT) amounted to Rs 27.1 million, driven by the banking duo MCBG and SBMH which accounted for 80.9% of TMT. Overall volume exchanged on the stock numbered 11 million shares.
The upward trend in the market reflected gains by investment cluster group firm ENL land Ltd which inched up by 9.5% to close at Rs 52.00, upon cautionary announcement indicating that ENL Investment Limited currently considering the possibility of an amalgamation with ENL Land Ltd and upon amalgamation, ENL Land would remain as the amalgamated company.
In the banking cluster, MCB Group Ltd declined by 1.4% to hit Rs 221.8 after continuous rise over the past few weeks where the stock reached a record high of Rs 225.00.
As for SBM Holdings Ltd, the island’s second largest financial services major remained constant at Rs 0.89.
The positive performance of the SEM-10 can also be attributed to the increase in the value of investment stock ENL Land followed by Rogers & Co. Ltd, which inched up by 3.2% to close at Rs 30.85.
Other investment stocks, namely, Alteo Ltd, Terra Mauricia Ltd and CIEL Ltd, remained stable at Rs 31.00, Rs 30.00 and Rs 6.88 respectively.
Another positive movement was noted in the hospitality cluster, with Lux Island Resorts Ltd recording an increase of 0.8% while New Mauritius Hotels Ltd for its part dropped by 1.1%.
Besides, Ireland Blyth Ltd in the commerce cluster closed at Rs 115.00.
The top three performers of the week were Dale Group Ltd, which increased by 13.8%, followed by ENL Land Ltd that edged higher by 9.5%, and Swan Insurance Co. Ltd, which appreciated by 7.5% to end at Rs 430.00.
The main market losers were gaming major Lottotech Ltd which depreciated by 22.0% upon poor financial performance for the year. Other major decliners were Automatic System Ltd and Policy Ltd which dipped by 9.7% and 3.1% respectively.
Major market news during the week pertained to release of financial statements of listed entities. Besides,MUA is seeking to raise Rs 325,650,000 through a rights issue to strengthen its capital base following the acquisition of PTHL in 2014, and also to place the Mauritius-based insurance major in a better position to capitalise on future expansion opportunities in East Africa.
Finally Améthis Finance, which acquired a 17.1% stake in February 2015 in CIEL Finance Limited – the banking and financial services cluster of Mauritian group CIEL – has increased its stake by 7.8% as initially planned, thus affirming its long-term commitment towards CIEL Finance, in which it now holds a 24.9 % stake.