For the week ending Monday 21st July 2003, the local bourse finished slightly higher. The local broad equity index, the Semdex edged 0.2% higher to 381.22, while the blue chip barometer Sem-7 index closed the week up by 0.3%. Last week, the total return index, the SEMTRI rose by 0.2% and remained above the psychological 1,000 points. Since the beginning of 2003, the SEMTRI climbed by 24.7%. The total trading turnover on the official market or the week stood at Rs 50.6m, 17% lower than the weekly trading turnover recorded since the beginning of 2003. Trades on Rogers and NMH accounted for 69% of the total trading turnover.

Last week, listed economic sectors posted a mixed performance. The positive performers were the sugar (+3.2%), hotels & leisure (+2.2%), industry (+0.9%) and investments (+0.6%) stocks. Foreign interest drove shares of hotel counter NMH up by 3.1% to Rs 39.50. Shares of Sun Resorts Limited edged 0.7% higher to Rs 43.90.

Automatic Systems Limited (ASL), the company that runs a totaliser (Tote) system of horserace betting, saw its shares jump by 13.6% to Rs 26.00. Enthusiasm for ASL stems from the Government’s proposal to reduce the “betting tax” from 12% to 8%. Another proposal from the Government about the review of existing taxes on imported vehicles is expected to provide a boost to the importation of brand new cars, especially those with gasoline-powered engines.

Last week’s decline of the highly capitalized stocks MCB (-0.4% to Rs 27.30) and SBM (-1.8% to Rs 16.00) dragged the banks & insurance sector into negative territory for the week. In a communiqué, MCB announced the setting up of a management committee spearheaded by Mr Gérard Hardy, during the temporary absence of its top two managers.

Commerce stocks edged 2.1% lower. The expansion of the retail sector network continues with the opening of a second Cora hypermarket next month in Port Louis. Analysts considered that the mounting competition and depreciation of the Mauritian Rupee versus its main trading partners might adversely affect retailers’ profitability. Against this backdrop, consolidation of existing players may gradually gain pace. This is already evidenced by several previously independent supermarkets operating now under the Spar brand name.

More recently, Business Magazine mentioned the possibility of a takeover of Discount Plus (owned by Happy World Foods Limited) retail outlets by Winners (a subsidiary of commerce conglomerate Ireland Blyth Limited). IBL hit the news last week with its decision to acquire 51% of DTOS Limited, a management company, which provides services to Global Business Companies.

This move enables IBL to further expand the activities of its financial services arm, which already consists of insurance and leasing activities. IBL finished the week down by 4.5% to Rs 19.00 while HWF remained stable at Rs 14.50. respectively. Commerce conglomerate Rogers saw its shares drop by 3.3% to Rs 88.00 on local selling.

Contribution by Confident Asset Management Ltd

Source:  L'Express 16 Janvier 2005.