Rwandan market update

Rwanda's market turnover saw a significant decrease by 41.7 per cent to 133.6 million francs from 228.7 million Rwandan francs during the week. The market activity was mainly concentrated on Bralirwa, accounting for 86.0 per cent of the market turnover. Gideon Sang, Senior Investment Research Analyst at BK Capital, provided insights on the market performance, noting a muted stock market over the week and a slight decline in February compared to January. Key counters like Bralirwa, BOK, and IMDB Rwanda experienced slight declines in share prices over the last month. The turnover in the market also witnessed a decline, primarily due to limited activity on key counters such as Bank of Kigali and IMDB Rwanda alongside Bralirwa. However, Sang expressed optimism about renewed interest with the upcoming full-year results release for 2024. He anticipated increased activity and potential price upticks, particularly in dividend-paying counters like Bralirwa, Bank of Kigali, and Aindam Rwanda. Sang also highlighted the dividend payment policies of Aindam Rwanda and Bank of Kigali, expecting these to attract investor attention. Regarding the RSC, Sang mentioned no significant price changes week-to-week but anticipated increased activity as companies release their 2024 full-year results, notably in the banking sector stocks expected to declare dividends. The market's reception of the new governor at the National Bank of Rwanda, Madam Soraya, was positive. Sang noted her previous experience with the Monetary Policy Committee and anticipated stability and growth in the banking sector under her leadership. Expectations for the governor included addressing currency instability, promoting exports for dollar inflows, implementing tighter monetary policies for currency stability, and maintaining inflation within the set target range of two percent to eight percent. Sang highlighted the importance of the governor's role in ensuring economic stability and growth amidst various risks the economy faces. Overall, the market outlook remains positive with expectations of increased activity and stability under Madam Soraya's leadership.