13 September 2021

IC The Week Ahead

In brief


  • Ghanaian stocks logged a solid advance last week with notable strength in the energy and consumer names.
  • With economic and market sensitive data lacking, we expect Ghanaian stocks to trade largely sideways over the next few weeks. That notwithstanding, we anticipate occasional bullish bouts fuelled by local institutional investors seeking to diversify away from the money markets.


  • The mood music for Nigerian equities continued to develop in the negative key as foreign exchange liquidity concerns and lower crude oil production softens the growth outlook for Africa’s largest economy.
  • The market is expected to remain largely unchanged in the coming week as the challenges with repatriation of investment proceeds exacerbate risk-averse behaviour.


  • With little news to support fundamental valuations, investors favoured defensive oriented stocks in the utility sector and remained broadly speculative across mid and small caps.
  • The approval for extension of debt repayment through the Paris Club augers favourably for Kenya’s immediate economic outlook while improving short-term liquidity. Consequently, despite the recent stock market rally we expect macro inputs to equity valuations to change favourably, providing a bit more room for further upside.