top story Africa investor Ai40 Weekly Commentary - 8 February 2016

The Ai40 Investor’s Index held on to another week of gains; this time it was up 2.63 points from last week’s value of 88.33. This is a healthy gain of 2.97% to reach a close of 90.96 for the week. The three ‘Anglos’ took the Index’s top positions, but dealers are describing the movement as due to a "short squeeze", says Moneyweb, not a change in prospects for the stocks. US markets were all down at Friday’s close with the main culprits being tech stocks. Volatility in the tech sector dragged the markets lower (LinkedIn experienced its worst trading day ever) but declining oil prices and disappointing US jobs data also contributed. US employers added only 151,000 jobs last month, but the good news is that unemployment fell to 4.9% from 5%, the lowest level since February 2008, according to the Los Angeles Times. At Friday’s close, the Dow Jones Industrial Average was down 1.29%, or 211.61 points, to close the week at a value of 16,204.97. The Nasdaq Composite Index fell 3.25%, or 146.41 points, to end the week on a value of 4,363.14, while the S&P 500 lost 1.85% (35.40 points) to close Friday at 1,880.05. Gainers Although possibly due to a short squeeze (when those who bet on the price falling further are forced to sell, pushing the price up further), Anglo American, Anglo Platinum and AngloGold Ashanti took the top three positions on the Ai40 Index during the week under review. Anglo American was up a massive 34.8%, Anglo Platinum was far behind in second place with a gain of 19.7% and AngloGold Ashanti jumped 17.8%. Two Moroccan stocks rounded out the top five. Real estate firm Douja Prom Addoha increased in value by 11.4% and the Moroccan arm of global cement giant Lafarge jumped by 8.8%. Morocco is becoming more and more popular as an investment destination and, as a result, real estate and construction firms are benefitting from the boom.


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