Turbulence on the Tunisian Stock Exchange
( TUSTEX) – The market swept on over three sessions of strong gains in SFBT and SOTETEL before dipping Thursday to rebound again finishing higher 1.48 percent in SMART index and more than 4 percent in industrials and Services overall. TUNINDEX remains also on bullish tendency touching a new high Wednesday at 1394.45 points before ending little lower at 1392.18 at the closes.
SOTETEL has kept the spotlight on the stock leading the way higher with SFBT. During the Thursday session, a downturn due to technical and psychological factors has prompted hasty divestments intentions where physiognomy was literally inverted. SOTETEL is currently ranking the 10th market weight with a capitalization moving ahead close to TND 150 m. Rumors on a new capital lift have triggered buying intentions as volume soared to TND 4.34 m over both lines with a slight preference for the new shares. Friday, Prices in old shares were sent higher after a two-day stand-off for exceeding limits by 8.28 percent to add further momentum up to 16.32 percent to be second star performer of the week. At TND 173,200, fund managers think it still scope for prices to go beyond the TND 200 mark when the market is turned entirely focalized on these shares.
SFBT got an impressive lift as well; the beverages company, which shows obvious acceleration in activity in mid summer, has seen demand over its shares soaring sharply to reach an impressive level of TND 4.9 million. This surge has been combined with an increase in prices by 5.98 percent making 4 to TND 6 in regular daily up ticks. The market is anticipating strong H1 results given the company’s new status of monopoly on the fizzy drinks, which led investors to raise their positions waiting for further appreciation.
The selectivity of the market hit the other listed stocks. Leasing has slid again this week as CIL, ATL and AMEN LEASE shed overall more than 3 percent. Banking still in lethargy though showing a little improvement on AMEN BANK and ATB edging higher 2.38 percent and 3.06 percent respectively showing a defensive tone since last week. BT and STB were the heavily traded stocks over the sector with TND 0.8 million and TND 0.305 million. The two last trading sessions carried the most part of this turnover when prices fell to their week lows. Apart from SFBT, Agri-business sector is suffering from structural illiquidity, the diary companies, STIL and TUNISIE LAIT slumped 7.8 percent and 8.7 percent whereas EL MAZRAA fell down to its annual low at TND 10.6 on Thursday. The sector is the most neglected besides the chemical one.
In spite of the absence of exceptional blocks transfers, the activity was boosted to TND 17.8 million thanks mainly to sparking demand on SFBT and SOTETEL. SFBT totaled almost TND 4.9 million on weekly turnover, which equalized nearly TND 1 million on average out of Tuesday to Thursday trades. This reliance on SFBT and SOTETEL represent in other cases a high-risk factor if sentiment swing accidentally back. SIAME and SPDIT were among the big movers with 26,880 and 40,000 shares changing hands across both stocks respectively.