BRVM Week 8: SONATEL is a market turner

The regional stock market is showing a record weekly performance and is closing with 140 points. Indeed, the BRVM Composite (+4.53% to 138.68 points) recorded at the end of the past week its most important weekly increase since the beginning of the year.

In a downward trend since the beginning of February, the regional financial market has suddenly changed its trajectory thanks to the riding of the behemoth SONATEL. Indeed, the release of the company's annual activity report for 2020 sparked euphoria among investors who rushed to buy on the value, pushing it up by 13.15% (for the week) to 12,290 FCFA. Please note that SONATEL represents more than one third of the BRVM market capitalization.

In the balance of changes, it is noted that buyers have regained the upper hand over sellers in terms of the number of securities increasing (22) and the number of securities decreasing (14).

Regarding the sectoral indices, only the BRVM Transport (-3.04% to 342.90 points) closed in the red in line with the fall of BOLLORE CI (-3.11% to 1,400 FCFA). Investors traded a total of 1.3 billion FCFA during the week.

The winners of the week

At the individual level, the prize for the best performance of the week is awarded to NESTLE CI which jumped by 17.50% to 705 FCFA. Falling sharply from the beginning of February, speculators cashing in on January's appreciation of the stock managed to change course. Indeed, awakened by the company's strong outlook, we have seen some investors return to value this week. However, it should be noted that this return is rather timid in view of the volume traded on the security (1,373 shares exchanged for a value of 0.9 million FCFA).

Also on the first step of the podium of the most important growth of the week, we find CROWN SIEM CI (+17.50% to 235 FCFA) that has achieved the same performance as NESTLE CI. After three consecutive weekly declines, investors scrambled to buy the stock in view of the RSI's close proximity to its overselling zone.

In the TOP 5, SONATEL SN (+13.15% to 12,290 FCFA), SICABLE CI (+12.66% to 1,290 FCFA) and BERNABE CI (+8.20% to 660 FCFA) were also inserted.

The losers of the week

On the flop of the week, BICICI takes the first place in the ranking with a performance of -14.40% at 4,280 FCFA. Evolving in a bearish channel since the beginning of this month of February, BICICI has not managed to reverse the trend at the end of this quotation week.

In second place of this ranking, we can see SUCRIVOIRE CI which has lost 9.09% of its value during the last week to reach 500 FCFA. Flirting for several weeks with the upper band of the Bollinger's bands, navigating above its 20- and 50-day moving averages, investors positioned on the stock were panicked and began to sell it.

Other values of FLOP 5 are SAFCA CI (-7.27% to 255 FCFA), SITAB CI (-6.67% to 700 FCFA), and BOLLORE CI (-3.11% to 1,400 FCFA).

La Rédaction

Publié le 01/03/21 17:53