The Tunisian stock market: A weekly report

Published November 12th, 2000 - 02:00 GMT

Tunis maintained a bearish trend despite the mid-week short-lived turnaround. In late week, the SMART index failed to keep up with the 870-875 range falling in renewed wobbly sentiment to July heights as prices were crumbling again in industrial and services sectors.  

 

The financials rather solid than in last week tempered the sentiment closing flat.SOTETEL, the telecom sector blue chip, outperformed by 3 percent and 2.18 percent respectively in common and bonus shares to climb at DT 176.9 and TND 165.  

 

SOTETEL (Ng) which had moved lower to TND 150 last week reached a price high of TND 172.400 in early Tuesday's trading on resumed demand. Investors were attempted by the two lines gap picking up the bonus shares at below TND 170 after analysts meeting with SOTETEL's board on Tuesday had allowed to settle somehow the situation.  

 

Investors were reassured that revenues in 2001 are expected to grow by 30 percent anticipating a revival in fixed and mobile telephony, although they expressed certain disappointments for the low estimates awaited for 2000 earnings. 

 

In services, TAIR went down losing almost 19 percent in four sessions limits down. The share price plunged to nearly TND 10.800 with more than 35,000 shares offered at market price on Wednesday. By the end of the week, demand resurfaced on belief that the market’s correction exaggerated the continuation of severe market conditions. It is argued that this high-gear sensitive sector would perhaps recover as rapidly as it was slumping in the past time. Henceforth, a buying cycle could set out. 

 

The big losses in terms of capitalization weight came from SFBT pulling the official TUNINDEX down 1.7 percent. SFBT lost 3.21 percent showing meantime higher intra-day volatility, this involved a lot of trouble for the investors who are eager to widen positions on understanding that the company third quarter revenues were extremely strong. 

 

Financials are still mixed showing some signs of recovery in the leasing sector. Banks such as BH, BS and BIAT were off more than 1.3 percent. BIAT and BH turnovers grew consistently with almost 83,000 and 123,000 shares respectively traded across the first part of the week in block transactions. AMEN BANK, BT and UBCI edged higher by 1.2 percent in limited quantities. The state has reiterated encouragement for private banks to take part to the consolidation process seen to attain a turning point by 2001.  

 

Last week, officials in central bank outlined the promising outlook of STB especially the valuable synergies and economies of scales its upcoming merger with BDET and BNDT will involve.Block deals had more animated the after-cote time on Monday with 54,000 BIAT priced at TND 22 and 100,000 BH at TND 11.5. Both shares shored up the shoppy trading lifting volume to TND 11.3 million while SFBT had recorded fewer with TND 2 million due to portfolios moves swinging back in SOTETEL favor this week. ― ( Tustex )

© 2000 Mena Report (www.menareport.com)

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