Bloomberg News

Sub-Sahara Africa Stocks: AccessKenya, Diamond Bank of Nigeria

February 03, 2012

Feb. 3 (Bloomberg) -- The FTSE/Namibia Overall Index advanced for a fourth day, jumping 1.3 percent to 938.34 in Windhoek, the highest since July 2008.

The Nigerian Stock Exchange All-Share Index rose 0.3 percent to 20,877.64 at the close in Lagos, according to a statement on the bourse’s website. Mauritius’s SEMDEX Index climbed 0.1 percent to 1,832.78 by the end of trading. Kenya’s All-Share Index was unchanged at 54.36 in Nairobi.

The following were among the active equities in sub-Saharan Africa, excluding South Africa. Stock symbols are in parentheses.

AccessKenya Group Ltd. (ACCESS KN), the East African nation’s only publicly traded Internet company, dropped 3.2 percent to 4.55 shillings, the lowest since the bourse debut in June 2007, on investor concern about its business strategy after the company said it plans to connect as many as 100 buildings with fiber-optic links at a cost of 100 million shillings ($1.2 million) to increase market share.

“They are doing an extra investment of 100 million shillings but investors are not very confident that kind of investment will sustain their earnings momentum for 2012,” Eric Musau, a research analyst at Nairobi-based Standard Investment Bank Ltd., said by phone today.

Diamond Bank Plc (DIAMONDB NL), a Nigerian lender which operates in four other African countries, advanced for a fifth day, the longest winning streak since August, rising 2.3 percent to 2.67 naira, as investors bet its earnings will rise in 2012.

“Investors are betting on a 2012 recovery on Diamond’s earnings,” Adesoji Solanke, Lagos-based Africa banking analyst at Renaissance Capital, said. The expectation is based on “management’s guidance for a cleaner balance sheet and asset- quality matrix going into 2012,” he said.

--Editors: Peter Branton, Ash Kumar

To contact the reporter on this story: Chris Kay in Abuja at ckay5@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net


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