Tunisian Market picks up from weakness
The market picked up from weakness early this week to stage a five-session rally after the temporary gloomy sentiment has been driven out. The SMART index was sent higher 1.83 percent at above 915 points while services jumped 3 percent. Financials rose 1.57 percent despite dragging buying interests but news over the STB planned merger tried to live up to hopes the market-based consolidation debut.
SFBT reached Tuesday a psychological mark when hitting TND 177.1. The share extended a TND 2 gain to edge higher 1.52 percent at TND 179.9. Investors still regard the company as the most valuable investment vehicle. Many are ever poised to strengthen their positions even at levels close to TND 170, or 52x 2000 non-consolidated earnings. This is expressing a high confidence level in SFBT capacity growth for years ahead.
Dragged down by weak demand in last week, services have rapidly recovered as investors prompted wide buying waves. SOTETEL buoyed energetically the market. Leaping up at TND 182.6 Friday, the common share jumped 10.67 percent while the bonus share recovered promptly by 12.1 percent at TND 177. The rises were achieved amid steep worries respite and renewed enthusiasm that gave a boost to buying interests. The share historic euphoria, which looks more to run out a week before, is yet persistent.
Parities in planned merger between BNDT/STB and BDET/STB were unveiled Tuesday at 0.42 and 0.65 respectively, leaving an upside potential to BDET. Accordingly, investors trimmed their expectations about BNDT by overweighing BDET more solicited as it posts an attractive discount. Prices in BDET surged by more than 11.4 percent. With the whole focus put on BDET, investors have also neglected STB by mid week, the share that dealt Wednesday a markedly record volume of TND 1.1million finished on the sidelines at TND 12.3 after touching a six-month high at 12.54 during this trade. Uncertainty still prevails about the timing of the merger, which is predicted to step up a consolidation wave giving food for thought for many others small banks.
Rising stocks outnumbered the declines; SIAME, SPDIT and SITEX have largely outperformed the benchmarks. SIAME bounced back at TND 64.5, up 4 percent and doubled its last week turnover back above TND 0.6 m. SPDIT advanced 6.15 percent for a two-day gain of 2.8 percent. As anticipated, the paper rarity in SITEX exerted pressures on its prices that shot ahead to TND 12.1.
On the other hand, many stocks from leasing and services slipped back closely to their annual lows. CIL edged 0.74 percent lower at TND 26.8, its 9-month low. TAIR appeared to have finally found a floor at TND 16.310 its worst annual level, under performing by 5.19 percent to date. The Tunisian airline stock remained oversold as opacity overshadowed even the shorter outlook in revenues leading concerns to continue to haunt the market.
The week stood out one of the busiest of the year. SPCD acquisition by UNILEVER provided 45 percent of the week volume. The sale block represented 314,234 shares, which correspond to 24.5 percent of SPCD worth TND 15.8 million, and was carried out Friday after SPCD shareholders had approved the deal in an AGM gathered extraordinarily on Thursday. The turnover reached a record of TND 35.3 million while the parallel market registered the CODEPAR sale for almost TND 88 million (97.71 percent of the capital), to be the UNILEVER's. — ( TUSTEX)
© 2000 Mena Report (www.menareport.com)