January Ends in the Red at the Mauritius Stock Exchange

January has closed on a downward trend at the Mauritius Stock Exchange, with limited trading volumes and a drop in revenue. The banking, real estate, and hospitality sectors are affecting the current trend of the local market.

The Mauritius Stock Exchange ended its last session of January on a negative note, confirming a pattern already seen in previous weeks. During the session on January 30, the main indices fell. The Semdex was at 2,348.54 points, the Semtri at 11,166.89 points, and the Sem-Asi at 2,088.10 points, indicating ongoing pressure on the market.

Trading involved 1.71 million stocks, including 935,588 shares of Universal listed in British pounds. Several stocks weighed heavily on the overall direction. Ascencia dropped by 2.44%, while CIM Financial declined by 0.91%. ER Group lost 0.24%, and MCB recorded a decrease of 0.23%. Moroil (-0.31%), NMH (-0.36%), POLICY (-1.10%), and UBP (-0.46%) also ended the session in negative territory.

This session is part of a prolonged weakness in the local market. During the week ending January 23, the SEMDEX had already declined by 0.53%. Over the same period, the total market turnover (TMT) showed a contraction of 43.85% week-on-week, according to Swan Securities' weekly report.

In the banking sector, MCB Group ended the week down 0.35% at Rs 433, while State Bank of Mauritius Holdings showed no variation, closing at Rs 6.68. Among conglomerates, IBL Ltd fell 0.17% to Rs 29. ERL dropped 2.22% to Rs 22, while CIEL remained stable at Rs 8.52.

The real estate sector also experienced a downturn. MSE lost 3.88% to Rs 62, Almarys declined by 2.56% to Rs 6.10, and Ascencia closed at Rs 18.50 after a 2.63% drop. In the hospitality sector, LUX (-0.48%), NMHL (-0.72%), and SUN (-3.15%) ended the week lower, unlike Riveo, which increased by 0.23% to Rs 22.15. Additionally, among sugar conglomerates, Altéo gained 1.26% to Rs 12.05, while Terra fell 1.32% to Rs 18.75.

Wall Street Shaken by Geopolitical Tensions Despite Midweek Rebound

American stock markets faced a turbulent week ending January 23, dominated by geopolitical developments and political statements, according to Swan Securities’ weekly report.

The session on January 20 was marked by a significant wave of selling, with investors responding to fears of escalating trade tensions between the U.S. and Europe. The situation worsened after President Donald Trump reiterated his intention to acquire Greenland and announced, via a message on Truth Social, a 10% tariff on certain European imports starting February 1, with a potential increase to 25% by June 1.

On January 21, sentiment improved after the U.S. President's speech at the World Economic Forum, excluding any military option and calling for negotiations with Denmark. Markets rebounded following the announcement of a framework agreement with NATO and the abandonment of tariff threats.

The recovery continued on January 22, boosted by the easing of tensions and stable U.S. economic indicators. However, during the session on January 23, performances became mixed again.