COVID-19Weekly Economic Watch

29th May 2020

2

Introduction

Highlights

• While the widespread macroeconomic ramifications of COVID-19 are becoming increasingly visible in incoming data releases, the pandemic is also triggering a rise inglobal poverty levels. At another level, as per a recent report by the IMF, the economic downturn is testing the resilience of banks on the worldwide scene.

• On the other hand, global stocks have surged during the week as optimism grew about the reopening of economies worldwide. For their part, oil prices have beenmore volatile this week as a large unexpected crude inventory buildup has counterbalanced the impact of to higher demand amidst the reopening of economies.

• As for Africa, a recent report by Fitch Solutions indicates that lockdown measures have triggered a noticeable increase in demand for e-commerce services across thecontinent’s constituent countries, with the trend likely to continue over the medium term.

• In Mauritius, a key challenge is to promptly address deficiencies in relation to the effectiveness of the country’s AML/CFT regime as identified by foreign organisations,with a view to further demonstrating our commitment to adhering to international norms and standards. At another level, further insights have, during the week,been obtained on funds being mobilised to support socio-economic measures. On this note, the country could draw on the experiences of other nations that haveunveiled ambitious roadmaps for underpinning economic and social recovery in the wake of the COVID-19 pandemic.

This is the seventh issue of our weekly economic watch, issued in the context of economic and financial developments arising in the midst of the ongoing COVID-19 pandemic. The views

expressed in this document are based on our current assessment of the situation. Readers are, however, advised to take cognizance of the highly dynamic nature of the operating landscape,

which may, therefore, cause opinions and forecasts to evolve rapidly over time. Moving forward, we will continue monitoring the evolving situation in the post-lockdown period, with the

release of economic reports to be determined in accordance with developments on the local and international fronts.

3

While lockdowns are being gradually lifted, the global economy remains stuck in limbo …

With the global economy in a historic slump and mounting US-China trade tensions, the echoes of a potentially more prolonged downturn are getting harder to ignore. Indeed,while the flash PMI data for May released at the end of last week for the US, UK and Eurozone showed a bounce from the extremely low levels seen in April, the indices,nonetheless, remain well below the 50 mark, suggesting a further decline in activity levels. Furthermore, latest data released in recent times provide further visibility on thescale and magnitude of the economic damage.

Expected fall in global output in 2020 (EIU)

4.2%

79.5%

45% >115%

Amount of capital outflows from emerging

markets since the beginning of the pandemic (IMF)

100USD billion

4.5%

Expected GDP contraction in India in annualised terms during the second quarter (Goldman Sachs)

Expected contraction of South Africa’s economy in 2020 as a result of the pandemic (S&P)

Expected contraction in GDP in the euro area in 2020 (ECB)

Level of debt-to-GDP in

France by end of the year due to COVID-19 (French Budget Minister)

Total Global fiscal support deployed to confront the pandemic so far (IMF)

Germany ifo Business Climate index remained below

pre-pandemic levels in April albeit improving modestly (Ifo Institute)

9USD trillion

8-12%

39 million

Number of people who have lost their jobs in the US in the past nine weeks (US Department of Labor)

4

… with the pandemic undoing years of progress in curbing global poverty …

COVID-19 impacting global poverty

• As stressed in a recent article by The Economist, workers in many countries cannot make upfor lost income by working harder because demand for labour has collapsed as a result of theCOVID-19. Empty restaurants need no waiters, shuttered malls need no mopping, and fewmotorists are rolling down their windows to buy fruit from street hawkers. The newlyimpoverished cannot easily get help from friends or relatives because, no matter where in theworld they are, they are all experiencing a simultaneous and massive economic shock.

• Furthermore, very few of the world’s poorest can work from home. And without earning anincome, many cannot provide for their basic needs. Thus, the pandemic is imperiling one ofthe greatest achievements of recent decades – the reduction in global poverty. Specifically,from 1990 until last year, the number of extremely poor people (in absolute poverty), i.e.those who subsist on less than USD 1.90 per day, fell from 2 billion, or 36% of the world’spopulation, to around 630 million (some 8%). Now, for the first time since 1998, that numberis rising and at a fast pace.

• On the whole, the World Bank estimated, in April last, that national lockdowns and the globaleconomic collapse would push at least 49 million people into extreme poverty, eliminatingnearly all the gains made since 2017. The outcome could end up being even worse whenmaking allowance for the sharper-than-anticipated contractions in economic activity beingwitnessed worldwide.

Source: The Economist

Source: The Economist, May 23rd edition

*Share of the world’s population living on less than USD 1.90 per dayat 2011 PPPUNU: United Nations University

5

… and threatening to impact profitability of banks on the global scene

COVID-19 testing the resilience of banks worldwide

• As per the latest IMF Global Financial Stability Report, profitability has been a persistent challenge forbanks in several advanced economies since the global financial crisis. While very accommodativemonetary policy was crucial to sustain economic growth during this period, extremely low interestrates have also compressed banks’ net interest margins — the difference between interest earned onassets and interest paid on liabilities. A recent analysis by the IMF shows that, beyond the immediatechallenges associated with the COVID-19 outbreak, a persistent period of low interest rates is likely toput further pressure on bank profitability in the coming years.

• In general, healthy banks play a key role in the economy. When unable to generate profits, banks areless likely to provide loans and other financial services to households and firms, starving the economyof much needed credit. A simulation exercise conducted for a group of nine advanced economies bythe Fund indicates that a large fraction of banks in these economies, may fail to generate profits abovetheir cost of equity in 2025.

• Overall, the pandemic is an additional test to banks’ resilience. As per the IMF, once immediate crisis-related challenges recede, banks could resort to fee income increases, costs cutting or consolidation tomitigate pressures on profits, but it may be challenging to fully allay such pressures. Meanwhile, takingexcessive risks to recoup profits may sow the seeds of future problems. The report, therefore, indicatesthat policymakers should find a balance that safeguards the country’s financial stability and financialinstitutions’ soundness, while supporting economic activity.

Sources: IMF & Bloomberg

Note: GSIBs = global systemically important banks; large euro areaeconomies = France, Germany, Italy; low-interest-rate economies = Japan,Sweden, Switzerland; North Atlantic economies = Canada, United Kingdom,United States; ROE = return on equity

Source: IMF, Global Financial Stability Report, April 2020

Median cost of equity has ranged from 8 percent to 14 percent since 2013

6

Overall, the world stands to gain from the adoption of a doughnut economic model

According to a recent report from the World Economic Forum, the COVID-19 pandemic presents an opportunity for incorporating green programmes into recovery plans so asto rebuild better and change the way industries operate. Amsterdam, the Netherlands' biggest city, offers an example of how this might work in practice. It is embracing a‘doughnut’ economic model that envisions a ‘world in which people and planet can thrive in balance’, as indicated in the report.

The Amsterdam City Doughnut Report

• The doughnut is a way of thinking abouteconomics based on the priorities set out by theUnited Nations Sustainable Development Goals.

• One of its key aims is that no one should be left inthe hole in the middle of the doughnut, fallingshort on the essentials of life. At the same time,humanity must live within the outside circle of thedoughnut – ecological boundaries that aim topreserve the Earth’s resources.

• The doughnut shape left in-between those twocircles is the sweet spot, where everyone on theplanet has a good social foundation and theEarth’s resources are not being overexploited.Striking this balance is in focus as the world beginsto emerge from the COVID-19 pandemic andstrives to find a way forward.

Sources: World Economic Forum & Amsterdam Donut Coalitie

7

Key highlights during the week

• Stocks rose during the week as investors shrugged off the negative news about the rising US-China tradetensions and the political situation in Hong Kong to focus on COVID-19 recovery hopes. This comes asGovernments around the world step up plans for a gradual return to normal. Japan’s Nikkei rose to its highestsince early March, while the S&P 500 traded above 3,000 for the first time since March 5. Furthermore,European sentiment stocks hit the highest levels in 11 weeks amid the global market rally.

• At another level, the stark divergence between segments of the stock market since the onset of the pandemiccontinues to capture attention. In fact, so far, big economic shutdowns have rewarded technology, ecommerceand healthcare groups. The laggards include energy, financials, retailers, transports and industrials — alongwith real estate companies that face an accumulation of missed rental and mortgage payments.

Sources: Bloomberg, US Treasury, Financial Times & JP Morgan

Global markets surged on recovery hopes during the week …

Stark divergence between segments of the stock market

• The pandemic shock has further enhanced theleadership of technology and healthcare over the pasttwo to three years.

• One opportunity for investors could be to buy cheapersectors and then wait to benefit as they close the gapwith the current market leaders. Another view is thatcompanies with impressive growth prospects, strongbalance sheets and the capacity for disruptionrepresent better long-term holdings. Overall,disruptive companies in cloud services, digitalpayments and bioprocessing could play a crucial rolein stock selection over the next decade.

Source: Financial Times

As at 27 May 2020w.o.w

changey.t.d

change

MSCI World 2,136.9 2.1% -9.4%

S&P 500 3,036.1 2.2% -6.0%

Dow Jones 25,548.3 4.0% -10.5%

Nasdaq 9,412.4 0.4% 4.9%

FTSE 100 6,144.3 1.3% -18.5%

CAC 40 4,688.7 4.3% -21.6%

DAX 11,657.7 3.9% -12.0%

Nikkei 21,419.2 4.0% -9.5%

10-year US Treasury yield

0.68% 0.0 pp -1.2 pp

US

Europe

Asia

Stocks

Bonds

8

… while commodity prices were characterised by mixed fortunes

Sources: Reuters, EIU & World Gold Council

Oil prices

• Oil prices were quite volatile this week, after a surprise buildup in crude inventories reported by the American Petroleum Institute and ongoing uncertainty about Russia’scommitment to a deep oil production cut ahead of the June OPEC meeting appeared to have counterbalanced the impact of higher demand amidst the progressive easing oflockdowns around the world.

• As per updated estimates by the Economist Intelligence Unit, Brent crude prices are expected to average USD 38 per barrel in 2020, with risks still tilted on the downside,stemming notably from a potential second wave of COVID-19 cases which would reduce prices by USD 10 per barrel. For 2021, EIU expects oil prices to rise to an average of USD44 per barrel – a slight upgrade from the agency’s previous forecast – reflecting the impact of production cuts adopted by Saudi Arabia as well as falling US shale production.

Gold prices

• Gold prices fell to a two-week low as optimism around several economies re-openingsomewhat dulled the metal's safe-haven appeal, though rising US-China tensions overBeijing's proposed security law for Hong Kong capped losses to a certain extent.

• With regard to gold investments, as per a report by the World Gold Council, investmentdemand for gold grew by 80% in y-o-y terms in Q1 to reach a four-year high of 540 tonnes,as fears over the economic and social impact of the virus drove safe-haven flows into goldETFs and official gold coins. Of note, however, investment in gold bars fell, notably in Asia,owing to the difficult context.

Tonnes 2019 Q1 2020 Q1 % change y.o.y

Investment 301 540 80

Bar & coin 258 242 -6

of which:

  India 34 28 -17

  China 71 37 -48

Gold-backed ETFs 43 298 >500

Demand for gold as an investment Demand for Gold as an investment

9

Rising demand for e-commerce in Africa

• As stressed in a recent report by Fitch Solutions, consumer behaviour towards onlinechannels has gained more traction since the onset of the pandemic. Specifically, insub-Saharan Africa, lockdown and stay at home measures have triggered more useracceptance of e-commerce platforms. This emerging trend has also prompted anincrease in web traffic as noted by Jumia – a Nigeria-based e-commerce player –which reported a spike in both customer and seller interest for groceries whileessentials (notably food and medicines) grew four-fold in Q1 compared to last year.

• Along the same lines, the report highlights that the SSA region is set to witnessrelatively high real rates of consumption growth in the e-commerce industry –despite few operational challenges – over the medium term. The key underpinningsthat are expected to shape this positive development are summarised below.

Pan-African payments giant Flutterwave has set up an e-commerce portal thatallows merchants set up online shops that it will power payments for. Thecompany is positioning to facilitate recourse to e-commerce by offline storesand merchants.

In Kenya, Twiga Foods, a marketplace which supplies retailers with freshproduce from farms, has partnered with Jumia to widen the scope of its reach,allowing households order and receive foodstuff without visiting supermarkets.

FarmCrowdy, a Nigerian agri-tech platform that allows people invest in existingfarms for a share of profits, has also launched an e-commerce platform thatallows consumers to purchase fresh farm produce and have it delivered to them.

Eko Hotel, one of the biggest hotel brand in Nigeria, has launched an onlinefood delivery service to shore up revenue deficits given the impact of thepandemic on hospitality businesses.

Amidst increasing demand dynamics, consumer-facing companiesoperating in SSA are seizing the opportunity to re-engineer theiroperation model. Interestingly, those companies that do not have thecapacity to handle delivery themselves are approaching onlinemarketplaces to sell their goods during this time.

Jumia partnered with the global health products manufacturer ReckittBenckiser to supply cheap hygiene products, such as soap bars, disinfectantsand liquid hand wash. The partnership covers Algeria, Egypt, Ghana, Kenya,Morocco, Nigeria, South Africa and Uganda.

Shifting operating models

Large young population

The young population is more likely to lead the way, as these areconsumers earning their first incomes and are more tech-savvy,allowing for greater interaction with online services.

Generation aspect

Millennial and Gen Z consumers are more likely to have travelledoutside of SSA and more exposed to e-commerce offerings and willbe a key demand group for these offerings in their home countries.

Increased urbanisation

In general, large urban populations are increasingly easier to targetand deliver to, given a more simplified supply chain.

Source: Fitch Solutions and media articles

Supply sideOut of necessity surrounding lockdowns and other social distancingmeasures, consumer facing companies have to quickly adapt andoffer e-commerce options.

In Africa, the pandemic is likely to boost e-commerce demand and development

10

In Mauritius, a key challenge is to promptly address deficiencies identified by foreign organisations …

As stressed in our previous editions, the country’s inclusion on the European Commission’s list of High Risk Third countries with deemed strategic deficiencies in their AML/CFTregimes warrants attention insofar as it can exert adverse strains on the reputation and attractiveness of the Mauritius IFC. As the situation stands, a key priority should be topromptly address deficiencies relating to the effectiveness of our AML/CFT regime as identified by the foreign organisations with a view to strengthening the case for Mauritiusto pave the way for a prompt delisting of the country on the FATF and EC lists. With regard to the inclusion of Mauritius on the EC list, the following points deserve attention.

Key arguments to build our case

• Prior to the inclusion of Mauritius on the list, the European Commission (EC) did not engage in any formalconsultation with Mauritius on the issues raised. As stressed by the Secretary General of the Organisation ofAfrican, Caribbean and Pacific States, the lack of consultation or notice to affected states such as Mauritius isagainst provisions of articles 8 and 12 of the Cotonou Agreement which refer, respectively, to the politicaldialogue needed to lead to a commitment on both sides and the responsibility of the Commission to inform theSecretariat of the ACP of planned proposals.

• The EC list follows a revised methodology aimed to ensure better alignment with the Financial Action Task Force(FATF) list. It can be recalled that the FATF has, in February last, included Mauritius on its list of ‘Jurisdictionsunder Increased Monitoring’. Worth noting, while the FATF list does not call for the application of enhanced duediligence, the EU directive obliges its member states to apply enhanced customer due diligence measures withrespect to business relationships and transactions involving high-risk third countries. Furthermore, the EUmethodology tends to unfairly target less developed nations such as Mauritius. Indeed, the inclusion of Mauritiuson a list of countries that could pose significant threats to the financial system of the European Union seemsdisproportionate given the small size of our financial sector and that of our economy.

• It is also worth noting that Mauritius has, in recent years, revised the fiscal regime applicable to global businesscompanies and introduced enhanced substance requirements in adherence with international norms andstandards. The Mauritian jurisdiction is now considered as being fully compliant with EU and OECD standards.Furthermore, the country has been rated compliant or largely compliant with 35 out of 40 FATFRecommendations, after having addressed 53 out of the 58 actions identified in the FATF Mutual EvaluationReport. Dedicated moves include adoption of new laws and regulations, formulation of a comprehensive NationalAML/CFT Strategy, development of an AML/CFT risk-based supervision framework for financial institutions.

• Additionally, the Mauritian authorities have already engaged with the EC and FATF to reiterate the country’s high-level political commitment to the effective and timely implementation of the prescribed FATF action plan byaddressing the remaining 5 actions at latest 30 September 2021. It can be noted that a first progress report wassent to the FATF on the agreed date, but the progress report could not be assessed by the FATF, given that thelatter’s process was halted amidst the COVID-19 pandemic.

International positioning of Mauritius

40 Recommendations of the FATF

Rated ‘Compliant’ or ‘Largely Compliant’ to

35 out of 40 Recommendations

OECD Global Forum on Transparency and Exchange of Information for Tax Purposes

Rated Compliant

EU list of non-cooperative jurisdictions for tax purposes

Not included(Co-operative)

Organised Crime Index Africa 2019by The Global Initiative

2nd most resilientcountry in Africa

Global Terrorism Index 2019by the Institute for Economics and Peace

0/10(No impact)

US State Department Country Reports on Terrorism

Not included

Corruption Perception Index 2019by Transparency International

56th/183 countries

Global Corruption Barometer Africa2019 by Transparency International

Lowest bribery rate in Africa (5%)

… while the recovery plans being crafted by countries worldwide make for insightful reading

11

As the situation stands and as stressed in our previous editions, the articulation of an ambitious and thoughtfully-designed roadmap that can assist in spearheading the country’sgradual transition to a higher economic growth path and promoting employment and well-being of the society is deemed crucial. In that respect, it is insightful to refer toroadmaps being elaborated by countries on the worldwide scale to promote socio-economic recovery in the wake of the COVID-19.

Solidarity, cohesion and convergence

in the recovery plan

• Invest in green and digital transitions and circular economy, alongside other policies such as cohesion

Underlying thrusts of the EU’s recovery plan

Flexibility allowing the recovery plan to evolve over time depending on

how the situation evolves

Inclusiveness such that the recovery is

co-owned by all parties involved

Key priorities

• Strive to reduce over-dependence on third countries

• Integrate resilience assessment and measures into economic development planning

• Enhance national infrastructure to build economic resilience

Specific policies unveiled as part of recovery plans worldwide

New Zealand has unveiled in its latest budget,dubbed ‘Rebuilding Together’, plans to buildthe infrastructure needed to unclog cities,connect towns, and to support sustainabledevelopment and meet climate change goals.

The European Commission has unveiled a €750billion aid package to help the EU recover fromthe pandemic. The plan aims to support therecovery but also invest in future: the EuropeanGreen Deal and digitalization will boost jobs andgrowth, the resilience of societies and thehealth of the environment.

The Central American Social IntegrationCouncil, representing 8 countries of the regionare planning to leverage the opportunity ofsustainable urban development as a driver foreconomic recovery through comprehensiveurban regeneration.

The African Union and the InternationalRenewable Energy Agency agreed to workclosely to advance renewable energy across thecontinent to bolster Africa’s response toCOVID-19. Furthermore, the East AfricanCommunity has crafted a COVID-19 ResponsePlan which urges Partner States to notablystrengthen their local food production systems.

Milan has announced an ambitious reallocationof street space from cars to cycling and walkingin direct response to the coronavirus crisis.Other cities such as Amsterdam, Bristol andMelbourne have also announced their intentionto become more sustainable, inclusive andcircular cities in the post COVID-19 era.

The Austrian government announced on 17April 2020 that any state aid to supportAustrian Airlines should be tied to specificclimate conditions, with options including apledge to reduce short-haul flights, increasedcooperation with rail companies, heavier use ofeco-friendly fuels and bigger tax contributions.

On another note, further insights have been obtained on funds mobilised to support socio-economic measures

In addition to various measures being adopted to support the financing of projects and the creation of the COVID-19 Solidarity Fund, the authorities are actively mobilising fundsfrom local and foreign sources – the main ones being outlined below – to underpin socio-economic measures. To undertake a more informed appraisal of the measures, weawait for further details on the utilisation of the funding, notably in respect of the conditions and modalities attached thereto.

Bank of Mauritius measures

• As part of the Bank of Mauritius COVID-19 Support Programme, an exceptional contribution of Rs 60 billion would be provided by the Central Bank to the Government tosustain economic activity and mitigate risks to financial stability. BoM would finance the contribution of Rs 60 billion by issuing its own instruments (as from mid-June andonwards), while capitalising on the high rupee liquidity position prevailing in the banking system (see next slide).

• The Mauritius Investment Corporation (MIC) will be set up as a fully-owned subsidiary of the BoM to: (i) assist systemically important and viable companies in financialdistress as a result of the COVID-19 – MIC to invest in large and medium-sized enterprises with a minimum annual turnover of Rs 100 million; (ii) invest in companies gearedtowards building self-sufficiency in basic necessities; (iii) invest in companies promoting Mauritius as an innovation-driven economy; and (iv) support the development ofreturn-generating key strategic assets and projects in the country. Up to USD 2 billion from the foreign exchange reserves of the Central Bank would be made available to theMIC which will invest in eligible companies through a number of investment tools including both equity and quasi-equity instruments.

Recent funding secured from international agencies

African Development Bank• Euro loan of €188 mllion (around Rs 8.3 billion) to finance the national budget support programme to respond to the COVID-19

pandemic

Saudi Development Fund • Agreement reached over an amount of USD 360 million (around Rs 14.4 billion) to finance the country’s imports over one year

12

Excess MUR liquidity rose in the banking system …

13

The Bank of Mauritius resumed its issuance of Government of Mauritius securities for the first time in about a month’s time.

• On Friday 29 May 2020, the Central Bank accepted bids for Government of Mauritius Treasury Bills in the 182-Day tenor from Primary Dealers for a nominalamount of Rs 3,000 million, with a weighted yield of 0.19%

• Furthermore, the Bank of Mauritius announced the auction of a New Benchmark Five-Year Government of Mauritius Bonds maturing on 04 June 2025 through anauction to be held on Tuesday 02 June 2020, for a nominal amount of Rs 3,500 million for settlement on Thursday 04 June 2020.

Excess cash holdings of banks – MUR

Rs 39,096 m

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

9-M

ay-1

9

23-M

ay-1

9

6-Ju

n-1

9

20-J

un-1

9

4-Ju

l-19

18-J

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9

1-A

ug-1

9

15-A

ug-1

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29-A

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9

12-S

ep-1

9

26-S

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9

10-O

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9

24-O

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21-N

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5-D

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19-D

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2-Ja

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0

16-J

an-2

0

30-J

an-2

0

13-F

eb-2

0

27-F

eb-2

0

12-M

ar-2

0

26-

Mar

-20

09-

Ap

r-20

23-

Ap

r-20

07-

May

-20

21-

May

-20

Rs

mill

ion

Of note, figures consist of balances held by bankswith the Bank of Mauritius in excess of the requiredminimum cash balances

Source: Bank of Mauritius

Sources: Statistics Mauritius, Bank of Mauritius, MCB Staff estimates, Nasdaq & Reuters

… while the rupee remains subject to pressures in effective terms

14

• The US Dollar lost some grounds against majorcurrencies during the week as progress in liftingcoronavirus lockdowns and stimulus plans in Europeweakened demand for safe havens. That said, risingconcern about the ongoing US-China trade tensionscontinues to support buying of the greenback.

• The euro neared towards a two-month high during theweek after the European Commission proposed acoronavirus economic recovery package that will bringthe total financial firepower of the EU budget to €1.85trillion.

• China’s yuan hit a near nine-month low as worries aboutthe US response to China’s proposed security law forHong Kong injected a more cautious tone into foreignexchange markets.

• The pound fell close to its lowest levels in more thanthree decades during the week amidst ongoing Brexituncertainties, the prospect of negative interest rates inBritain and a growing pile of debt.

Currency movements on international markets during the week

Note: An increase/decrease in the above index corresponds to a depreciation/appreciation of the Mauritian rupee

MUR v/s main currencies

The Bank of Mauritiussold USD 40 million onthe forex market on the21st May at the rate ofRs 39.85/USD

94

98

102

106

110

114

3-J

an-2

0

10

-Jan

-20

17

-Jan

-20

24

-Jan

-20

31

-Jan

-20

7-F

eb-2

0

14

-Feb

-20

21

-Feb

-20

28-F

eb-2

0

6-M

ar-2

0

13

-Mar

-20

20

-Mar

-20

27

-Mar

-20

3-A

pr-2

0

10-A

pr-2

0

17

-Ap

r-2

0

24

-Ap

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0

1-M

ay-2

0

8-M

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0

15

-May

-20

22

-May

-20

29

-May

-20

Ind

ex: 0

3 J

an 2

020

= 1

00

Evolution of MUR against main currencies

USD EURO

Mid-rate

29-May-20 w.o.w m.o.m y.o.y y.t.d

MUR % % % %

USD 39.85 0.0 (0.4) 12.0 9.4

Euro 44.13 1.5 1.8 11.4 8.7

(Appreciation)/Depreciation of the rupee

For its part, the SEMDEX dropped marginally during the week

Evolution of the SEMDEX Performance by companies (year to date)

1,400.00

1,600.00

1,800.00

2,000.00

2,200.00

2,400.00

SEM

DEX

-p

oin

ts

Ceased trading

Banking & Insurance

MCB Group Limited -29%

SBM Holdings Ltd -37%

Eagle Insurance Ltd +2%

MUA Ltd +8%

CIM Financial Services Ltd -24%

Swan General Ltd -20%

Commerce

Harel Mallac Ltd -13%

Innodis Ltd +12%

Ireland Blyth Ltd -14%

Vivo Energy Mauritius Ltd -3%

Industry

Gamma Civic Ltd -27%

Go Life International Ltd 0%

Phoenix Beverages Ltd +3%

Mauritius Chemical & Fertilizer Industry Ltd

-6%

Mauritius Oil Refineries Ltd -13%

Plastic Industry (Mauritius) Ltd -10%

United Basalt Products Ltd -28%

Investments

Alteo Ltd -15%

Belle Mare Holding Ltd -23%

Caudan Development Ltd -10%

CIEL Limited -38%

ENL Limited -30%

Fincorp Investment Ltd -34%

The Mauritius Development Investment Trust Co. Ltd

-35%

Medine Ltd -30%

National Investment Trust Ltd -17%

Promotion and Development Ltd -25%

P. O. L. I. C. Y Ltd -13%

Rogers & Co. Ltd -44%

Terra Mauricia Ltd -3%

United Docks Ltd -18%

Leisure & Hotels

New Mauritius Hotels Ltd -62%

Lux Island Resorts Ltd -59%

Sun Limited -48%

Automatic Systems Ltd -15%

Lottotech Ltd -8%

Property development

BlueLife Limited -42%

Sugar

Omnicane Ltd -38%

Transport

Air Mauritius Ltd (as at 22 April 2020)* -29%

* Suspension until further notice of dealings in securities of Air Mauritius Limited, with effect as from market close on 22 April 2020 15

• The slight fall in SEMDEX observed during the week is mainly linked to worsenedperformances across the ‘Banking & Insurance’ and ‘Investments’ sectors.

% in points % in points

SEMDEX -26.3 -573.4 -0.7 -12.1

As at 28 May

y.t.d change w.o.w change

Vicky Hurynag

Head of Strategy, Research & Development

Nuvin Balloo

Lead Economist & Manager

Jessen Coolen

Team Leader – Economic Analysis

This report has been prepared by the Strategy, Research & Development (SRD) department of MCB Ltd, with the main authors being:

For more information, please contact the SRD Economic Analysis team on (230) 202-6381/ (230) 202-5814 or economic.analysis@mcb.mu