Air Mauritius Limited (AML) hit the news with the forthcoming appointment of Mr. Megh Pillay, the current CEO of Mauritius Telecom Ltd., as its new managing director. In a press communiqué, AML announced that Mr. Vinod Chidambaram will not renew its contract and will retire on the 25th September 2003. Last week, AML shares jumped by 4.4% to Rs16.50.

For the week ended Monday 22nd September 2003, the local bourse strengthened further, helped mostly by a sharp appreciation of transport and sugar stocks. One factor that bolstered interest in Mauritian equities was their attractive dividend yield of 8.4% p.a.

amid the Bank of Mauritius? monetary easing stance. Savings rates at commercial banks stood as at 5.0% p.a.

Last week, both the broad market Semdex and the total return (SEMTRI) indices recorded a modest gain of 0.3%. The Sem-7, the index tracking the share price performance of the largest capitalization stocks on the local bourse, appreciated by 0.4%.

Trade turnover for the week grew by 5.1% to Rs 30.7. The highest trading activity was recorded on hotel group New Mauritius Hotels Limited (NMH) and on the State Bank of Mauritius Limited, which totalled to about 40% of the week?s turnover. Foreign investors were reported to be active buyers on these two stocks.

The latest weekly Official Bulletin from the Stock Exchange of Mauritius reported that foreign investors were net buyers to the level of

Rs 5.4m. Foreign investors were only sellers on shares The Mauritius Commercial Bank Limited (NMH). Last week, shares of MCB remained stable at Rs 27.00, whereas NMH shares jumped by 1.3% to Rs 38.00.

Hotels stocks are expected to do well in the final quarter of 2003 amid hopes of global economic recovery and a firm Euro. Shares of Sun Resorts Limited (SRL) remained unchanged at Rs 43.00. SBM failed to maintain its upward momentum following its share buy-back announcement as it dipped by 5.0% to Rs17.10 on profit-taking.

The top performing sector of the week under review was the sugar sector, which rose by 8.1%. Mon Trésor Mon Désert Limited rallied by 11.6% to Rs 48.00. On the commerce counter, Ireland Blyth Ltd. and Rogers & Co. Ltd. saw their shares drop by 1.6% and 1.1% respectively. Last week, investment stocks gained 0.5% and increased their lead to 24.7% for the year 2003. Many investment stocks are regarded as undervalued as highlighted by their substantial discount to their net asset values.

Moreover, these stocks also provide investors the opportunity to diversify their investments to overseas markets, which provided handsome returns in 2003. In view of releasing shareholder value, the directors of Liberty Investment Trust (LIT) proposed to convert the company into a limited life company, further to the approval of its shareholders and relevant authorities. LIT edged higher by 1.3% to Rs14.30 during the week under review.

Contribution by Confident Asset Management