THE FINANCIAL ANALYSIS OF OUR EXPERT
The Net Asset Value of IGF went up by 2.0% in April, as a result of positive contributions from both Mauritian and international equities. In Mauritius, the share price of MCB appreciated by 4.3%, while The Bee Equity Partners, where IGF now owns a 10.6% stake, went up by 4.1%. The African equities increased by 5.2%, while global equities went up by 1.5%.
A number of facts let us believe that we should see headwinds in the coming months:
- Locally, vaccinations are very slow, leading to a lack of planning for the reopening of borders, which is vital for the tourism industry and the economy in general. As a result, debt is surging, while GDP is declining with all the traditional economic pillars facing major challenges;
- The majority of commodities prices are going through the roof, but the US authorities have decided to raise taxes and shrug off inflationary signals. The erosion of purchasing power is bad news for equity markets.