The Nairobi Securities Exchange had a tough go of it in 2015, but investors have reaped exceptional rewards from long-term investments in stocks ranging from banking to agriculture. Here’s a countdown of the top Kenyan stocks over the past 10 years.
It appears that Tanzania’s Dar es Salaam Stock Exchange (DSE) will be Africa’s best-performing stock market in 2014.
Midway through the year, the market removed the 60% cap on foreign investors, making shares of some of the country’s largest, most profitable companies accessible to non-Tanzanians for the first time in years.
The resulting inflow of foreign cash propelled the DSE to new heights. As of this writing, the exchange’s Local Companies Index is up 27.2% in USD terms since the start of the year.
So, which Tanzanian stocks put the biggest smiles on investors’ faces in 2014? Let’s count down the top five performers.
At first glance, it would appear that the quiet Botswana Stock Exchange (BSE) had a lackluster year. Its main index is down 1.0% in USD terms.
If you look closely at the performances of individual stocks, however, you will see that the market was weighed down by two large banks that are struggling to grow profits due to Botswana’s record low interest rates. Most other stocks have enjoyed solid price gains.
Here’s a countdown of the top five performers.
British American Investments Company – Kenya (BRITAM) has made investors very happy of late. The stock is among the Nairobi Securities Exchange’s best performers this year, posting a dazzling 94.7% return.
Now the shares trade a shade below 2.5x their book value. Is that too rich a price? Or is there upside left here?
Let’s take a look at earnings (and Kenya’s long-term bond rate) to give us a clearer picture.
I hate to jump on bandwagons.
When it comes to investing, however, a mountain of evidence suggests that running with the herd may be more profitable than bucking the trend.
Repeated studies confirm that stocks with momentum – those whose share prices have recently outperformed the market – tend to outperform those that haven’t.
Here are a few high-flying South African shares that can make the trend your friend while minimizing downside risk.