Thursday, 26 March 2009

Brasseries du Maroc

Brasseries du Maroc is a Morocco-based company engaged in the beverage industry. It is specialized in the production and distribution of beer and a range of fizzy drinks. The stock trading on a 2008 PER of 17x with a yield of 5.9%.

Brasseries du Maroc just reported a 6% rise in sales to MD 2.09bn and operating profit up 11% at MD 494m. The company is bravely increasing its dividend by 23% on flat Profit after tax, the equivalent to a 100% payout ratio.

Euromoney Kenya

Finance Minister Uhuru Kenyatta joins Daniel Broby and others at the opening panel of the Euromoney Kenya conference.

Egypt update

Inflation in Egypt is set to decrease to single digits. The drop in tourism, Suez Canal receipts, exports, and remittances will slow the economy down, but growth is still expected in 2009. Meanwhile, the government collected an unexpectedly high amount of tax revenue in 2008 and the decrease in energy and commodity prices provided a boost. Conservative estimates and projections of GDP growth range between 3.5 and 4 percent despie the government targeting 5 percent growth

Friday, 6 March 2009

Standard Bank Group buys 33 percent of Troika Dialog

In a bold move Standard Bank Group of South Africa agreed to buy 33 percent of Troika Dialog for USD 200m (1x book value). Troika is Russia's oldest investment bank. It is highly respected in Russia and will make it look more like its competitor Renaissance Capital who are diversifying into Africa (the other way around). The deal will increase Troika’s capital base to more than $850 million, making it a formidable competitor to Renaissance. The financing of the deal were adjusted to fit in with South Africa's foreign exchange rules.

Thursday, 5 March 2009

Ghanaian Stock Exchange to go electronic

The Ghanaian Stock Exchange will switch on an electronic system at the end of March. The new system will reduce risks associated with paper certification, and in the lang run will imporove liquidity.

Monday, 2 March 2009

Saudi Telecom predicts 140% market penetration

Saudi mobile telephone penetration could reach 140 pct accorind to Saudi Telecom Co

The company intends to use the international financial crisis is an opportunity to get acquisitions and licences. Saudi Telecom, which posted a 62-percent drop in fourth-quarter profit, has faced stiffer competition in its home market as it competes with Zain and Etihad Etisalat.

Saudi Telecom also says it expects its revenues to grow at the same pace as they did in 2008 as it taps into a growing market among Saudis for broadband Internet and enterprise services.

Dubai bail out

The Dubai government which has built up a $80bn debt whilst diversifying its economy, recieved a $10bn federal loan from the UAE – in effect Abu Dhabi.

The federal loan will be enough for Dubai to refinance its immmediate debt but Dubai still has to refinance or repay $15bn this year in maturing loans and bonds.

Logistics in the Gulf

Logistics in the Gulf is one of our themes. The Public Warehousing Company is one of the best ways to get exposure to it. The company, yeilding 11% and sitting on a p/e of 4.94, is involved in freight storage, distribution and transport services. The trade financing side of the company is currently taking a hit but third party customs services continues to see demand.

Brinkmaking, ice cream and steel

Brinkmaking, ice cream and steel in Algeria, Tunisia, and Libya! That's what Poulina group is investing in to capture the upside from the GDP growth in these growing markets.

Poulina is Tunisias largest industrial company. The Company also operates through a number of subsidiaries, such as El Mazraa SA, which is engaged in the food processing sector; Aster SA, which markets software products and provides IT services; GAN SA, which manufactures and markets household electrical appliances, and Unipack SA, which is involved in the packaging and printing sector.

The IMF expects Tunisia to grow 5.9%in 2009. One to watch...


The South African maker of glossy paper continues to see falling demand, despite the currencies working in its favour. Hit by a double whammy of falling revenues and increasing costs, its stock is very out of favour at the moment. So much so, in fact, that it trades on a p/e of only 3.5 times.


Morocco's sugar industry continues to be one of the few bright spots in the frontier market space. Indications are for a near doubling in full year profits, which still leaves room for some modest upside (comparisons are easy as last year the company took a charge for discontinued operations). Sales are growing by a more modest 2%.

Mauritius commercial bank

Mauritius commerical bank was allocated USD 5m out of the central banks USD 125m line to local lenders as part of the Islands small attempt to emulate the credit crunch bailouts. Despite this, the company has managed to report a rise in net income for the first half to US 57.7m.

The bank is well capitalised with a capital adequacy ratio of 15%, above the 10% minimum requirement.

Enterprise Insurance

With strong mid twenties growth in underwriting growth, Enterprise insurance looks set to justify its companies stock resilience. Enterprise Insurance is the pioneer in the insurance industry in Ghana having been in operation for the past 80 years. It takes its roots as a subsidiary of Guardian Royal Exchange Assurance Ghana Limited. The company is currently the only insurance company listed on the Ghana Stock Exchange.

Egyptian Financial and Industrial Co.

The confusingly named Egyptian Financial and Industrial Co., Egypts largest fertilizer company continues to see low twenties earnings growth. Unfortunatly for the company, Egypt plans to eliminate fertilizer subsidies by the end of the year, so 2010 might not be so good. That said, we still see growth coming through.