Ryan Hoover, 11:11 am
Lucky shareholders of the 677-acre Limuru Tea plantation near Nairobi saw the value of their shares rise more than 11-fold this past decade. Rising tea prices didn’t hurt the company’s valuation, but the real impetus behind the stock’s rise is real estate. Limuru’s rolling hills are coveted by property developers. In hindsight, it seems a dreadful decade to have been invested in Kenyan stocks, yet a dozen stocks more than tripled in value. Here’s the NSE’s 10 best performers of the past 10 years.
Ryan Hoover, 2:51 pm
Historically, Kenya’s KCB bank disbursed 200,000 new loans per year. Then along came mobile banking, and loan applications skyrocketed. The bank made nearly 4 million new loans in 2015. Most borrowers never walked through the bank door. They applied for a loan on their mobile phone. These were small loans — $25-$30. How does KCB manage to administer such small loans profitably?
Ryan Hoover, 4:59 pm
Johannesburg-based AVI is one of Africa’s largest manufacturers and purveyors of consumer goods. With a product line that ranges from biscuits and handbags to cosmetics and rooibos tea, the company benefits directly from rising African income levels. But, year after year, AVI’s seafood division has proven to be a disappointing drag on the group’s growing profitability. What’s an AVI investor to do?
Ryan Hoover, 1:42 pm
A payment processor and debit card provider, Lagos-based Interswitch is considering a dual IPO on the London and Nigerian Stock exchanges. The company presently operates in five African countries but is looking for capital to expand. Lackluster performance in Africa’s stock exchanges hasn’t slowed the parade of IPOs. Here are 10 upcoming African IPOs to watch in the second half of 2015.
Ryan Hoover, 2:17 am AFKI Original
The African IPO market cooled off dramatically in the wake of the global financial crisis. Many stock exchanges went years without adding any new local listings. Now, however, with share prices recovering, an increasing number of African firms are looking to go public. In the past 12 months, nearly two dozen companies debuted on the continent’s stock markets. So, which companies will be in the next wave of debutantes? Here’s a list of six African businesses that have announced their intention to list within the last month.
Ryan Hoover, 11:10 am AFKI Original
Oscar Onyema has worked tirelessly since 2011 to build investor confidence in the Nigerian Stock Exchange as its CEO. The NSE’s All Share Index has risen 61.1 percent in U.S. dollar terms over the past 36 months, and trade volumes have increased from an average of $71 million per week three years ago to $139 million today. Onyema has provided inspired, responsible leadership that keeps investor excitement alive about the African growth story, says says AFKI columnist and investment analyst Ryan Hoover.
Ryan Hoover, 11:03 am AFKI Original
No African top-performers list is ever complete without the requisite sin stock, and British American Tobacco Uganda represents the class here. The company’s 2013 earnings actually dropped 11 percent, but sharp-eyed Uganda investors recognized that this was due to a couple of one-off expenses. With operating profit up 56 percent in 2013 and margins set to widen, I suspect they’ll make out just fine. Read on for sub-Saharan Africa’s top-five stock performers of 2014 thus far.
Ryan Hoover, 2:05 pm AFKI Original
Africa’s infrastructure deficit is far from secret, yet the statistics still boggle the mind. Meanwhile, Africa’s pension funds sit atop more than $200 billion worth of assets, a figure that analysts expect to triple by the end of the decade. Could this wealth be harnessed via the introduction of listed infrastructure funds to build new power plants, roads, and railways?
Ryan Hoover, 10:00 am AFKI Original
Are you a fan of bank stocks? If so, you’ll find the Nairobi Securities Exchange is chock full of them. Nine of the largest 15 Kenyan shares are banks, and a total of 10 are listed on the market. It’s not an exact science, but banks that show up on multiple lists are doing multiple things right. They are the best blend of profitability, growth, asset quality, and value. There is one bank that shows up on four of the five lists.
Ryan Hoover, 1:25 pm AFKI Original
With Nigeria’s central bank reducing the attractiveness of public sector deposits, Guaranty Trust Bank’s management is turning its attention to the man and woman on the street. A larger base of retail customers would give the bank a nice pool of inexpensive money to lend.