RSE rebounds after holiday

Rwanda's stock market witnessed a shortened trading week due to Independence and Liberation holidays, with only three trading sessions taking place. Despite the holiday disruptions, Bank of Kigali (BoK) emerged as the most actively traded stock on Friday, with a total turnover of Frw 45,021,500. To delve into the factors driving this activity and gain insights into the market's outlook, CNBC Africa spoke with Muganwa Lyna Kadigwa, Investment Analyst at BK Capital. Kadigwa noted that the stock market is primarily influenced by the forces of demand and supply, with investors making decisions based on available buying opportunities and prevailing market conditions. She attributed BoK's strong performance to the unrevealed Q2 financial reports of various institutions, including Bank of Kigali, prompting increased investor interest in the stock market. Additionally, the recent dividend payment by BoK further contributed to its appeal among investors seeking growth prospects. Despite outstanding offers on stocks such as MTN, INM, and BoK, sentiment seemed muted, possibly affected by declining dividend payouts and the prioritization of priorities amidst ongoing elections. The bond market also displayed subdued activity with no bids or offers, reflecting a cautious approach by investors who opted to hold onto their bonds while awaiting coupon payments. However, Kadigwa remained optimistic about the bond market's outlook, citing recent over-subscription rates and the positive interest rate environment set by the National Bank. The Rwanda Stock Index and All-Share Index remained stable over the past weeks, indicating minimal price movements and a shift in investor focus leading to stagnant stock prices. Looking ahead, Kadigwa anticipated limited market volatility in the near term but expected renewed interest from financial institutions and retail investors as they close out Q2 and look to enhance their investment portfolios. While short-term expectations point to subdued market activity, Kadigwa forecasted increased trading momentum in the medium to long term, driven by investor reassessment and strategic portfolio adjustments. Overall, the Rwanda market appears poised for gradual growth and potential sectoral opportunities in the upcoming weeks, fueled by a renewed investor appetite for equities and strategic investment decisions.