Mauritius Stock Market Commentary – Week Ending December 2, 2011

The Mauritian Semdex saw turnover at half of normal levels (USD 3.0m, MUR 88.5m) for the week. The market fell 1.6% driven by banks (-1.5%) and hotels (-4.6%). The market had five advancers, 21 decliners and 12 shares flat. The MUR was relatively stable, depreciating marginally to MUR 29.30 to the USD (-0.3%) and MUR 39.39 to the EUR. That left its ytd move against the USD at +5.4%.

The top five traders in Mauritius were MCB (-2.4%), Rogers & Co (flat), State Bank Mauritius (-0.6%), Naiade Resorts (-1.1%), and New Mauritius Hotels (-5.1%). Thus far in 2011 NMH has returned ­32.7%. The most significant gainers over the week were Mauritius Leasing (+6.3%), on strong trading volumes, and Swan Insurance (+0.6%). On the downside New Mauritius Hotels lead the charge followed by Sun Resorts (-4.5%), Caudan Development (-3.2%), POLICY (-3.2%), and Harel Mallac (-2.9%).

Naiade Resorts (-1.1%) outperformed its peers in the week possibly due to its announcement of a new strategic direction. Naiade management believe that the operator’s current branding is insufficient for recognition in key markets outside of France. Management noted the Mauritian and Maldivian markets are “fiercely competitive”. The new strategy is centred under its refreshed branding called LUX Island Resorts.

In other company news Mauritius Stationery Manufacturers has announced that it will delay the publication of its financial results by two weeks. The delay is due to on-going negotiations with the company’s senior lenders over balance sheet restructuring.

In economic news Bloomberg reported that Government plans to build a 100MW coal-generated power plant in La Mecque, Medine, on the western coast of the island. Tenders for the construction of the plant that will use “clean-coal” technology will start in February.

Source: African Alliance