GhanaKenyaNigeriaPan-Africa

21 November 2022

IC The Week Ahead

In brief

Ghana

  • The GSE-CI rallied in the week under review as the Ghana stock exchange recorded two gainers; TBL (+13.3% w/w) and MTNGH (+1.1% w/w), and no laggards. This resulted in a 0.5% w/w increase in the GSE-CI, as it settled at 2,463.1 points, bringing the month-to-date and year-to-date performances to 0.0% and -11.8%, respectively. However, in dollar terms, the month-to-date and year-to-date returns are -28.1% and -62.4%, respectively
  • Market turnover increased by 55.6% w/w to GHS 1.4m with MTNGH leading trading activity to account for 90.0% of the total value traded
  • We expect investors’ mood to remain mixed in the coming week as they continue to draw signals from the ongoing earnings season

Nigeria

  • Nigerian stocks logged a decent advance last week, with notable strength across board. The benchmark index increased by 1.2% w/w to settle at 44,492.7 points, bringing the month-to-date and year-to-date performances to -6.0% and +4.2%, respectively. Market activity decreased by 24.6% w/w to USD 17.5m. MTNN led trading activity, accounting for 18.9% of total value traded
  • Nigeria’s CPI inflation increased for the ninth consecutive month to 21.09% in October 2022, owing to rising food and energy costs. Inflation in food prices climbed from 23.34% in September 2022 to 23.74% in October 2022
  • In the coming week, we expect the market conditions to be choppy with neutral or bearish week-on-week returns as investors continue to trade cautiously amidst the rising inflation and electioneering activities

Kenya

  • Foreign investors drove trading on the Nairobi stock exchange last week while remaining net sellers. Large-cap counters such as BAT, Safaricom, and Equity experienced the highest net foreign outflows, settling at KES 428.0, KES 25.3 and KES 46.8 per share, respectively. However, the benchmark NSE index increased by 0.7% w/w to settle at 129.02 points. (YTD: -22.8%)
  • Market activity increased by 64.9% w/w to USD 16.0m. Safaricom led trading activity, accounting for 63.6% of total value traded. Market breadth favoured laggards in the ratio of 19 to 16, with Nairobi Business Venture Plc (+11.9% w/w) topping the gainers’ chart and Jubilee Holdings Ltd (-10.6% w/w) leading the laggards’ list
  • In the coming week, we expect to see the telco and banking sectors’ stocks account for a large chunk of the total turnover as the earnings season continues.