Rwandan market watch

The Rwandan Stock Exchange (RSE) wrapped up a quiet day with a total turnover of around Frw 1 billion, translating to 2,278,700 shares traded across the equities market in just two deals. Kevin Karobia, Senior Research Investment Analyst at BK Capital, joined CNBC Africa to discuss the market's direction. Karobia highlighted that today's low volume was mainly due to factors such as lower liquidity on the Pralirwa counter and the aftermath of book closure on the Bank of Kigali counter. Today's total turnover, predominantly driven by transactions on the Bank of Kigali counter, accounted for nearly 90% of the day's trading activity. The Pralirwa counter is seeing a mix of investors trying to exit at higher prices before the book closure and those looking to capitalize on potential gains before the deadline. Conversely, with the Bank of Kigali trading ex-dividend, Karobia noted a lack of new investors reflecting the dividends locked in by others, contributing to the subdued activity. Regarding the performance of certain counters like BLR and IMR, Karobia pointed out an imbalance between supply and demand. The Pralirwa counter, standing strong with a 13.4% gain and high investor confidence, is unlikely to see orders filled at the current price point. On the other hand, the INM counter is witnessing investors exit post-dividend payout, signaling potential shifts in investment towards other counters. The RSI and all-share index closed flat for the week, indicating a neutral market sentiment. Karobia emphasized the need for broader investor interest beyond high-yield counters like Bank of Kigali and Pralirwa, encouraging a focus on long-term value and dividend prospects across various sectors. Looking ahead, Karobia highlighted the telecommunications industry, particularly MTN Rwanda, as a promising sector for sustained shareholder value. With innovative products driving mobile money growth and expected pressure on voice revenues offset by data revenue growth, telecommunications remains a key area for investors to watch. Additionally, the banking sector, led by Bank of Kigali and INM, shows robust growth potential in loan book expansion and revenue generation. Cross-listed counters like KCB and Equity Group present opportunities for investors, with a focus on group performance and share price dynamics. Despite ongoing elections and campaigns, Karobia mentioned minimal expected impact on the stock market, assuring investors of continued market stability. In conclusion, while today's market activity was subdued, Karobia's insights shed light on potential growth areas and the long-term value proposition within the Rwandan Stock Exchange, giving investors a strategic outlook amidst market fluctuations.