In brief
Ghana
- The Ghanaian equity market declined by 2.9% week-on-week last week, trimming the year-to-date gain to 58.3% and extending the 30-day loss to 8.7%. The index downturn was driven by losses in Consumer, Mining, Technology, Banking and Telecom sector stocks.
- Total value traded surged by 83.2% week-on-week to USD 12.5mn, with Scancom Plc driving activity and contributing 94.4% of all trades.
- Market Outlook: This week, we anticipate positive price momentum for ACCESS, EGL, FAB, GCB, KASA and TOTAL, supported by stronger bid-side signals. Conversely, BOPP, CAL, DASPHARMA, EGH, ETI, FML, GGB PLC, GOIL, MTNGH, RBGH, SCB, SIC, SOGEGH and UNIL are likely to face downside risk as offer-side activity exceeds buying interest across these counters.
Nigeria
- The Nigerian equities market inched up by 0.9% week-on-week last week, lifting the year-to-date and 30-day returns to 62.0% and 4.0% respectively. The index upturn was underpinned by gains in mid-to-large-cap stocks.
- Total value traded increased by 35.0% week-on-week to USD 151.0mn, with Zenith Bank Plc driving activity and contributing 17.0% of all trades.
- Macro Front: The Central Bank of Nigeria (CBN) cut the Monetary Policy Rate by 350 basis points to 23.0%, citing easing inflation and improving macroeconomic stability, while retaining the CRR at 45.0%. We expect the lower rate environment to exert further pressure on fixed income yields and improve the relative attractiveness of equities, while potentially reducing funding costs for corporates
Kenya
- The Nairobi Securities Exchange’s All Share Index (NSE-ASI) rose by 4.1% week-on-week last week, bringing the year-to-date and 30-day returns to 33.2% and 3.0%, respectively. The upward movement in the index reflected broad-based gains in selected mid-to-large-cap stocks.
- Total value traded plunged by 50.3% week-on-week to USD 35.3mn, with Equity Group Holdings Plc driving activity and accounting for 23.5% of all trades.
- Corporate Front: Access Bank is consolidating its Kenyan operations by transferring Access Bank Kenya’s assets and liabilities to National Bank of Kenya (NBK), following regulatory approvals. We expect the merger to strengthen Access Bank’s position in Kenya by combining its operations with NBK’s established customer base and branch network.
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