ghanaKenyaNigeriaPan-Africa

17 January 2022

IC The Week Ahead

In brief

Ghana

  • The benchmark index for Ghanaian equities was up by 0.7% w/w spurred by increasing demand in large cap MTNGH, which weighed significantly on the index
  • Turnover, however, declined by 90.9% from the previous week to USD 0.4m with MTNGH and SCB accounting for 57.3% and 30.3% of total value traded respectively
  • In the coming week, we expect demand build up in large and mid-cap stocks. However, market direction will be determined mainly by MTNGH

Nigeria

  • The bullish tilt to trading remained intact as the benchmark NGX-ASI climbed 1.4% w/w to settle at 44,454.7 mainly led by gains in BUAFOODS. Investors also reacted positively to a share buy-back announcement by DANGCEM, which caused the ticker to rise from N255.00 to N270.00
  • Despite the bullish sentiments, market turnover was 48.5% lower than the previous week, with BUAFOODS leading the pack, accounting for 53.6% of total value traded
  • In the week ahead, we anticipate BUAFOODS and large cap names to be determinants of market direction

Kenya

  • After the bullish tilt to the previous week, Kenyan equities turned bearish on profit-taking in large caps in the telecommunication and banking sectors. As a result, the NSE-ASI shaved off 3.9% to end the week at 165.1 levels
  • The Exchange also saw CAR & GENERAL increasing by 56.5% w/w to KES 58.00, on account of a dividend (KES 3.20/share) and a one-for-one bonus share announcement
  • Turnover was down 20.7% to USD 13.4m with SAFARICOM accounting for 56.1% of the value of shares which exchanged hands
  • In the coming week, we expect sentiments to remain mixed as buyers emerge to take advantage of reduced entry levels in some big caps amid some risk-averse behaviour following the recent rally