Mauritius Stock Index Tumbles to Two-Month Low, Led by Hotels

Mauritius’s stock index declined to the lowest in more than two months on speculation a weaker euro will hurt revenue of hotel groups during the peak season.

The 38-member SEMDEX (SEMDEX) gauge dropped 0.5 percent to 1,871.86, the weakest intraday level since Sept. 28, by 12:45 p.m. in Port Louis, the capital.

New Mauritius Hotels Ltd. (NMH), the country’s largest leisure operator by market value, led the retreat, losing 2.6 percent to 75 rupees, the weakest since Sept. 27. Sun Resorts Ltd., the second-biggest group, lost 2.9 percent or 1.4 rupees, the most since Nov. 16, to 47.20 rupees, heading for its lowest level since May 2009.

“It’s related to the weak euro,” Kishen Nadassen, a senior research analyst at CIM Stockbrokers Ltd., said in a phone interview from the city. “It will impact on revenue of hotels as we enter the best months of the peak season.”

The euro accounts for about 41 percent of the nation’s foreign currency earnings, according to the Bank of Mauritius. The rupee weakened 0.5 percent to 39.1963 per dollar by 1:17 p.m., paring its advance this month to 4.2 percent, the biggest gain since June 2010.

Europe is the Indian Ocean island nation’s main market for tourism visitors, with a share of 63 percent for the ten months through October, data from Statistics Mauritius show. The peak season runs from October to March.

To contact the reporter on this story: Kamlesh Bhuckory in Port Louis at kbhuckory@bloomberg.net

To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net

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