Tanzania’s Top 5 Stocks of 2014

Tanzania's Best Stocks 2014

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.

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Botswana’s 5 Best Stocks of 2014

Botswana's Best Stocks

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.

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Here’s Why Dangote Cement Is a Buy

Dangote Cement

When Africa’s richest man, Aliko Dangote, announced a 40% price cut on bags of Dangote Cement last week, Nigerian consumers rejoiced.

The stock market’s reaction, on the other hand, was decidedly less enthusiastic. Shares of the company have plunged nearly 19% since the news broke.

So, will the stock weigh down a portfolio’s performance going forward or does it have a solid foundation for market-beating gains? Let’s take a closer look.

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Announcing the Stock Scout™ Newsletter

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It’s not easy to construct a profitable African stock portfolio.

Independent research is scanty. Fundamental data is tough to track down. And it’s difficult to get a sense of what makes a company tick, especially when separated by oceans and national borders.

That’s why I’m launching Stock Scout™: your guide to profitable opportunities on African stock markets.

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What to Make of GSK Nigeria’s Big Profit Drop

GSK Nigeria's most popular product

This week GSK Nigeria (GLAXOSMI) announced that its profits through the first nine months of 2014 dropped 23% compared to the same time period last year.

The news came as a bitter pill to investors. The stock has fallen nearly 16% over the past thirty days and now trades at its lowest price in 16 months.

Are the shares bad medicine? Just what the doctor ordered? Or something in between?

Let’s have a closer look at the numbers and see what they reveal.

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Is There Hidden Value in Stanbic IBTC?

Nigerian Stock Exchange

Stanbic IBTC is Nigeria’s best-performing bank stock. Its share price has climbed 40.5% this year and 55.4% over the past twelve months. Is it nearing the end of its run? Or is the market still offering investors a discount to the bank’s real worth?

Here, Godfrey Mwanza, CFA shows us how he values the company.

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Does Britam Kenya Still Have Room to Run?

Britam Kenya: Room to Run?

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.

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Is Nigeria’s 7-Up Bottling Company a Bargain?

7 Up Bottling Company

Nigeria’s 7-Up Bottling Company is one of the Nigerian Stock Exchange’s best performing shares this year, surging 107% on the back of strong sales and earnings growth.

Here we examine whether the Pepsi distributor’s current price offers value to long-term investors.

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Here’s Why Co-operative Bank of Kenya Stock Popped 12%

Co-operative Bank of Kenya

When Co-operative Bank of Kenya (COOP) announced last week that they were hiring global consulting firm, McKinsey & Company, for advice on improving operational efficiency, investors took notice. The stock has jumped 12.4% since the news appeared.

So why are investors so excited? How much scope does COOP have to streamline its operations? And how might such restructuring impact the bottom line?

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Are Ecobank Shares a Bargain?

Are Ecobank shares a bargain?

Shares of Pan-African lender, Ecobank Transnational (ETI), have surged 7.1% in the month of September, blowing away the Nigerian Stock Exchange’s All Share Index.

Qatar National Bank’s purchase of a 23.5% stake in the firm triggered the big price move.

Now the stock trades at its highest point in over four years. Is there still value left on the table? Or would investors be better off looking elsewhere? Let’s take a closer look to find out.

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