Monthly Highlights: October 2022

•  The North African stock exchanges closed the month in the red led by Morocco’s Semdex which closed -6.8% lower
•  In East Africa, bourses posted mixed performance; Mauritius Semdex was the highest gainer closing +1.9% while Kenya and Tanzania closed lower.In Kenya
•  All major West African indices closed in the red, led by Ghana’s GSE Composite (-24.3%)
•  Southern Africa exchanges posted mixed performances, with the Zimbabwe and Namibia Industrial closing higher whilst Zambia closed in the red. In Zimbabwe
 

Most African markets were largely negative during the month of October with ten posting weak performance in US dollar terms led by Ghana (-24.3%), Nigeria (-11.7%), Morocco (-6.8%), Egypt (-6.5%), Zambia (-3.9%) and Kenya (-2.8%), while the major gainers were Zimbabwe (+5.6%), Namibia (+3.2%) and Mauritius (+1.9%). Egypt’s EGX30 closed (-6.5%) lower with the Egyptian pound weakening by -17.1% to EGP23.0971 USD as the Central Bank moved to a durably flexible exchange rate regime and raised interest rates by 2%. In addition Egypt attracted USD9bn in funding from IMF, international partners and sustainable fund

The North African stock exchanges closed the month in the red led by Morocco’s Semdex which closed -6.8% lower

The North African stock exchanges closed the month in the red led by Morocco’s Semdex which closed -6.8% lower,.. In Egypt, Abu Qir Fertilizer and Chemical Industries reported impressive 1Q23 results (T/O: +80.0% y/y; PAT +115.0% y/y) driven by a +66.0% rise in global urea prices and a +60.0% rise in global ammonia prices coupled with an increase in the urea local quota price to EGP4,500/ton vs EGP3,000/ton from 19 November 2021.. Alexandria Mineral oils Company released positive 1Q23 results (T/O: +59.8% y/y; PAT +73.6% y/y) on the back of better sales mix along with the y/y global increase in selling prices desipte gross profit margin slightly inching down as COGS jumped +61.4% y/y. SODIC 3Q22 results were positive(T/O: +33.2% y/y; PAT +23.4% y/y) as top line growth was backed by deliveries in East Cairo projects which accounted for 81.0% of deliveries by value. Orascom Development Egypt (ODE) received a preliminary non-binding offer (NBO) from the six of October Development & Investment Company (SODIC) to fully acquire ODE’s 70% stake in its subsidiary, Orascom for Real Estate.

In East Africa, bourses posted mixed performance; Mauritius Semdex was the highest gainer closing +1.9% while Kenya and Tanzania closed lower.In Kenya

In East Africa, bourses posted mixed performance; Mauritius Semdex was the highest gainer closing +1.9% while Kenya and Tanzania closed lower.In Kenya, KPLC released impressive FY22 results (T/O: +9.2% y/y; PAT +135.2% y/y) the significant rise in profitability was principally attributable to an +88.7% y/y jump in other income and a -75.9% y/y reduction in income tax expense. East African Portland Cement released negative FY22 results (T/O: -22.4% y/y; PAT -71.31% y/y) attributed to unstable plant run, increased competition and a -57.3% y/y decline in fair value gain on investment property. Diageo Kenya Limited announced on 14 October 2022 to the public, the intention to acquire up to 118,394,897 additional ordinary shares in EABL by means of a tender offer made to all other share holders of EABL. The first face of the offer will close on 17 February 2023 at 5:00pm and the second and final face of the offer will open at 9:00am on 20 February 2023 and close at 5:00pm on 10 March 2023.

All major West African indices closed in the red, led by Ghana’s GSE Composite (-24.3%)

All major West African indices closed in the red, led by Ghana’s GSE Composite (-24.3%) dragged down by the currency as the GHS depreciated -34.0% against the USD in October.. In Nigeria, Flour Mills reported disappointing 1H23 results (T/O+37.8% y/y; PAT -45.9% y/y) as strong topline growth was offset by higher input prices (+37.8% y/y) and finance costs (+139.3% y/y), Zenith Bank released below average 9M22 results (GE: +19.6% y/y; PAT +8.6% y/y) as the +27.8% increase in non-funded income mainly as a result of a +50.3% increase in fees and electronic products was offset by a +278.8% increase in impairments Nigerian Breweries reported weak 3Q22 earnings (T/O:+19.3% y/y; PAT N/A) driven by rising operating costs (+24.0% y/y) with the company reporting a loss of NGN4bn from a profit of NGN498.4m same period last year.

Southern Africa exchanges posted mixed performances, with the Zimbabwe and Namibia Industrial closing higher whilst Zambia closed in the red. In Zimbabwe

Southern Africa exchanges posted mixed performances, with the Zimbabwe and Namibia Industrial closing higher whilst Zambia closed in the red. In Zimbabwe, Innscor Africa Limited released positive FY22 results (T/O: +182.5% y/y; PAT +334.2%) attributed to a solid operating performance on account of volume growth across all business units (+22.0%). The group also benefited from disposal of associate (USD8.6bn) and fair value adjustments on livestock and listed equities, however net finance costs increased by +227.2% y/y due to swelled borrowings and higher cost of borrowing. First Mutual Holdings, declared an interim dividend of ZWL118.7m (made up of ZWL73.1m and USD109.7k), the dividend will be paid on or about 11 November 2022. Edgars Sores Limited released 1H22 results (T/O: +347.3% y/y; PAT +608.8% y/y) driven by volume recovery, replacement cost pricing, cost management and initiatives to ensure fresher stock availability.