Hartland-Peel Africa Equity Research provides one of the most comprehensive databases on African listed companies dating back to 1990. The database has been licensed to various financial institutions and institutional investors internationally.

This report is an update as of December 2015 and covers the Top 30 companies in Sub-Sahara Africa ex SA by market capitalisation.

Key highlights:
  • There was a rebound of SSA ex SA markets in December notwithstanding falling commodity prices and weaker currencies. The market capitalisation of the Top 30 companies as of December 2015 was US$64.4bn, up 3.2% on the month but down 18.8% on the year.
  • Share price performance include two all time highs (page 2) and latest earnings releases (page 3). Share prices, in aggregate, are now at their level of November 2012 in US$ terms.
  • The stock market events of the month were (i) Rand weakness which impacted regional currencies and their markets (ii) the strength of Nigerian manufacturing companies in contrast to the weakness of Nigerian banks and (iii) Kenyan share prices were also strong (page 2).
  • New Entrants: Société Générale Bank (Cote d’Ivoire) and Union Bank (Nigeria).
  • Departures: NMB Bank (Tanzania) and Seplat Petroleum (Nigeria).
  • Our analysis shows:
    • 13 companies with a ROE > 25%.
    • 12 companies with a trailing P/E < 10.0 times.
    • 7 companies with a dividend yield > 5%.
    • 8 companies with a price/book value < 1.50 times.
  • Valuation graphs detailing Price/Book ratios vs ROE’s (page 8).
  • Kenyan and Nigerian inflation and interest rates (page 10) - Kenya has positive real interest rates of 1.9% and Nigeria’s real rate is zero.