top story Africa investor Ai40 Weekly Commentary - 6 July 2015

The two previous weeks of gains on the Ai40 Index are now a distant memory. A slew of poor performances among banks and breweries have wiped out those increases and not even strong showings from telecoms companies could shift the Index upwards. The Index lost almost three points (2.83 to be exact) to close on 106.80 points. This is a drop of 2.59% from last week’s value of 109.63. US markets were closed on Friday for the Independence Day weekend but, ahead of the Greek referendum on whether to accept more budget cuts in exchange for new bailout loans, concerned investors sent the markets downwards. With Greece having voted no, many will be wondering where to from here, and if a more favourable bailout deal is not reached within 48 hours, there is a distinct possibility of Greece leaving the euro currency. Thursday’s close saw the S&P 500 down by 0.03%, the Dow Jones Industrial Average lost 0.16%, and the Nasdaq fell by0.08%. For the week to Thursday, the S&P 500 lost 1.29%, the Dow dropped 1.22% and the Nasdaq lost 1.9%. Gainers Telecommunications companies were the standout performers this week. Four out of the top five gainers were telecoms firms and three of those were from North Africa. Top winner for the week was Maroc Telecom, which gained a relatively measly 3.2%. It was followed by MTN Group, which increased in value by 2.5%. MTN South Africa recently endured a seven-week strike and rumours are flying that the CEO Ahmad Farroukh is ready to step down. As for Telecom Egypt, the country’s landline monopoly is expecting to receive a 4G mobile licence early next year. The company was up 1.5%. Moroccan real estate firm Douja Prom Addoha was in fourth position with a gain of 1.3% and Kenya’s Safaricom rounded off the list with a tiny hop of 0.7%.


Uche Orji
CEO of the Nigerian Sovereign Investment Authority, speaks at the Ai Investment Summit
Bob Diamond
Co-Founder, Atlas Mara, speaks at the Ai CEO Institutional Investment Summit
President Mahama
of Ghana speaks at the Ai CEO Institutional Investment Summit
President Museveni
of Uganda speaks at the Ai CEO Institutional Investment Summit