IC Market Wrap: GSE Slides as High-Weight Counters Retreat

In brief

Ghana

The Ghanaian equity market declined by 2.1% week-on-week last week, trimming the year-to-date gain to 63.1% and extending the 30-day loss to 6.0%. The index downturn was driven by losses in Consumer, Mining, Technology, Banking, OMC and Telecom sector stocks.

Total value traded surged by 62.1% week-on-week to USD 6.9mn, with Scancom Plc driving activity and contributing 75.6% of all trades.

Market Outlook: This week, we expect CMLT, CPC, EGL, ETI, FAB and FML to post gains, supported by prevailing net bid positions. Conversely, CAL, CLYD, EGH, GCB, GGB PLC, GOIL, KASA, MTNGH, RBGH, SCB, SIC, SOGEGH, TOTAL and ZEN are likely to face downside risk as offer-side activity exceeds buying interest across these counters.

Nigeria

The Nigerian equities market advanced by 2.8% week-on-week last week, lifting the year-to-date and 30-day returns to 60.5% and 0.5% respectively. The index upturn was underpinned by gains in mid-to-large-cap stocks.

Total value traded increased by 37.6% week-on-week to USD 111.5mn, with Zenith Bank Plc driving activity and contributing 16.6% of all trades.

Corporate Front: Dangote Petroleum Refinery launched a NGN 2.15tn IPO, offering 4.1bn new shares at NGN 525 each to fund its expansion towards approximately 1.4mn barrels per day by 2029. The IPO implies a post-offer market capitalisation of about NGN 65.2tn and broadens retail investor access through a minimum subscription of NGN 5,250. We expect the listing to deepen the Nigerian capital market, enhance sector diversification and support further growth in NGX market capitalisation.

Kenya

The Nairobi Securities Exchange’s All Share Index (NSE-ASI) fell by 2.5% week-on-week last week, bringing the year-to-date and 30-day returns to 27.9% and 1.0%, respectively. The downward movement in the index reflected broad-based weakness despite gains in selected mid-to-large-cap stocks.

Total trade value increased by 48.7% week-on-week to USD 71.2mn, with East African Breweries Plc driving activity and accounting for 28.8% of all trades.

Corporate Front: Karakuta Fresh Produce plans to list on the NSE by introduction, providing investors with exposure to the agricultural export value chain without an immediate capital raise. We expect the listing to enhance liquidity for existing shareholders while supporting greater market visibility.

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