Bloomberg News

Sub-Sahara Africa Stocks: British-American of Kenya, UBA Nigeria

February 13, 2012

Feb. 13 (Bloomberg) -- The FTSE/Namibia Overall Index gained for the first time in three days, jumping 1.7 percent to 933.48.

The Nigerian Stock Exchange All-Share Index fell for a fifth day, weakening 0.2 percent to 20,583.61 at the close in Lagos, according to an e-mailed statement from the bourse. Mauritius’s SEMDEX Index fell for a third day, declining 0.4 percent to 1,824.86 by the end of trading. Kenya’s All-Share Index snapped four days of gains, falling less than 0.1 percent to 54.89 in Nairobi.

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

British-American Investments Co. (BRIT KN), a Kenyan financial-services group, fell for a fifth day, retreating 1.2 percent to 4 shillings, a record low, on investors’ concern over the extent of the drop in its profits.

“What investors are not really sure about is whether it is just going to break even or is it really bad news,” Eric Musau, a research analyst at Nairobi-based Standard Investment Bank Ltd., said by phone today. “We are seeing negative sentiment around the insurance sector because they rely a lot on investment income.”

United Bank for Africa Plc (UBA NL), a Nigerian lender with operations in 19 countries, retreated the maximum 5 percent to 1.72 naira, the weakest level since October 2003 The lender said Feb. 8 it expects to report a loss for the 2011 financial year and suspended a planned share sale the following day, citing unfavourable market conditions.

“There was a huge sell out of the stock, which put it under pressure,” Adesoji Solanke, a Lagos-based Sub-Saharan Africa banking analyst at Renaissance Capital, said by phone today. “This could be linked mainly to the profit warning issued by the bank last week.”

--Editors: Peter Branton, Linda Shen

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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