IC Market Wrap: Market Retreat Deepens as Selling Pressure Spreads | IC Group

In brief

Ghana

The Ghanaian equity market fell by 2.1% week-on-week last week, trimming the year-to-date gain to 59.6%, while the 30-day performance slipped to 1.1%. The index decline was driven by losses in Telecom, Banking and Energy sector stocks.

Total value traded rose by 4.7% week-on-week to USD 5.0mn, with GCB Bank Plc driving activity and contributing 52.8% of all trades.

Market Outlook: This week, we anticipate positive price momentum in ACCESS, EGH, GCB, GOIL, KASA, MTNGH, SIC, SOGEGH and UNIL, supported by stronger buying interest. Conversely, CAL, CLYD, CPC, DASPHARMA, EGL, ETI, FML and GGBL may face near-term downside pressure, as net offer positions point to weaker demand across these counters.

Nigeria

The Nigerian equities market fell by 2.1% week-on-week last week, trimming the year-to-date return to 59.9%, while the 30-day performance turned negative at -1.5%. The index decline was driven by losses in large-cap Industrial Goods, Oil & Gas and Banking stocks.

Total value traded declined by 15.4% week-on-week to USD 110.4mn, with Dangote Cement Plc dominating activity and contributing 13.1% of all trades.

Capital Market Front: The Dangote Refinery IPO allotment will go to the SEC on 10 November, with approval targeted for 17 November. We expect refunds on surplus applications to recycle liquidity into the secondary market ahead of the listing.

Kenya

The Nairobi Securities Exchange’s All Share Index (NSE-ASI) rose by 0.7% week-on-week last week, lifting the year-to-date return to 28.5%, although the 30-day loss widened slightly to 3.3%. The index advance was driven by gains in Banking and Telecom stocks.

Total value traded declined by 25.8% week-on-week to USD 18.4mn, with Safaricom Plc driving activity and accounting for 33.7% of all trades.

Corporate Front: Kenya Pipeline Company shares fell 23.0% w/w to KES 11.55 as interest faded after Dangote Group’s October block purchase. We expect investors to rotate towards liquid, fundamentally strong banking and telecom stocks. Meanwhile, the Quickmart IPO was oversubscribed by 22.7%, and institutional investors took a combined 45.6% stake in the company.

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