Bourse weekly turnover drops 48% as RSE ends ‘hard’ year

The Rwanda Stock Market (RSE) weekly turnover dropped by over Rwf69.8 million on December 30 to Rwf75.2 million, down from Rwf145.04 million recorded for the week ended December 23.
The local stock market is expected to do better this year after a poor run in 2016.
The local stock market is expected to do better this year after a poor run in 2016.

The Rwanda Stock Market (RSE) weekly turnover dropped by over Rwf69.8 million on December 30 to Rwf75.2 million, down from Rwf145.04 million recorded for the week ended December 23.

According to the RSE weekly report, this was a 48.18 per cent decline in value, ending a rather bad year for the local exchange. The report shows that 833,900 shares changed hands in 12 deals last week compared to over 1.6 million shares sold in 29 deals the previous week.

During the past week, Rwf135.6 million worth of bonds traded on the bond market, down from Rwf139.5 million worth of bonds traded during the week ended December 23.

Meanwhile, both Rwanda Share Index and All Share Index were unchanged on Friday to close at 119.91 and 127.26 points, respectively. However, this shows a decline from RSI and ALSI of 146.89 and 130.61 points recorded on January 5, 2016.

The RSE turnover dropped by 17.3 per cent between January and November, 2016 to $40.8 million (about Rwf341.9 billion), from $49.3 million (about Rwf413.1 billion) in 2015.

The local bourse market capitalisation was up at over Rwf2.748 trillion on December 30, an increase from Rwf2.745 trillion on Friday the previous week, but lower than Rwf2.820 trillion recorded at the beginning of the year on January 5 last year. Experts say the less-than-encouraging global economic situation affected performance of international markets, including RSE and others in the region last year. They add that regional exchanges, including the Nairobi Stock Exchange (NSE), experienced challenges that kept away off-shore investors over the past year or so.

However, sector players are optimistic new listings this year, especially the I&B Bank long-awaited initial public offering (IPO) expected in the first quarter of this year, could help stir up the market. The government is floating its 19 per cent stake in the lender, which analysts say could breathe much-needed additional offering on the exchange and attract more investors, especially Rwandans.

According to Magnifique Migisha, the Capital Market Authority (CMA) public relations officer, industry stakeholders are also planning to conduct awareness campaigns this year to attract more domestic firms to list on the bourse, as well as more Rwandans investors. The move, he believes, will create more interest among the public to invest in listed firms and, hence, increase activity and performance.

Meanwhile, Crystal Telecom recorded a total turnover of over Rwf3.9 million from 43,800 shares traded in one deal. The counter closed at Rwf90, unchanged from the previous trading session on Thursday.

The other equities counters were quiet, and two of the four cross-listed firms, Equity Bank and NMG, closed the year without trading a single share, with experts saying the counters are on the local bourse for purposes of visibility across the region. The other cross-listed counters are KCB and Uchumi Supermarkets.

Bank of Kigali closed at Rwf228, the second-lowest share price for the counter in the past 12 months to December 30. The lender’s highest share price was recorded at Rwf280 over the reporting period.

Bralirwa closed at a low of Rwf140 compared to the counter’s peak of Rwf272 during the past year. The counter lost the most share value, shedding Rwf132 when compared to its highest share price and lowest in 2016, followed by Bank of Kigali that lost Rwf53, while Crystal Telecom was down Rwf15 over the past year. Relatedly, Equity Bank closed at Rwf334 on Friday; NMG was at Rwf1,200; KCB at Rwf330, and Uchumi was at Rwf104.

On bond market, the FXD2/2015/10-year bond traded Rwf800,000 worth of bonds at Rwf103.6 in one deal, releasing Rwf828,800 in value. The bond is redeemable on 25/05/2025. The FDX1/2016/5-year with redemption date of 19/02/2021 transacted Rwf3 million worth of bonds in one deal at Rwf104.7, raking in Rwf3.1 million.

 

Have Your SayLeave a comment