Ghana

• The GSE-CI inched up by 0.3% w/w to settle at 4,905.1 points last week, bringing the year-to-date and 30-day returns to 0.3% and 4.5% respectively. The index advance was underpinned by gains in  Scancom Plc  and  Ecobank Transnational Inc.
• Aggregate market turnover plunged by 75.3% w/w to USD 0.05mn, with Scancom Plc dominating trading activity, accounting for 85.4% of the total value traded. Market breadth favoured gainers with a 2:1 ratio. Ecobank Transnational Inc.(+3.2% w/w | GHS 0.32) led the gainers’ chart, while Republic Bank Ghana Plc(-9.1% w/w | GHS 0.60) was the sole laggard.
• MTNGH’s share price appreciated as anticipated, supported by growing retail demand ahead of the FY2024 earnings release and a potential dividend announcement. Block sellers have adjusted their price levels upward to GHS 2.60, signaling intentions to capitalize on recent gains. Concurrently, retail investors are actively seeking value opportunities in the market, with a particular focus on dividend-paying stocks, as they position themselves to benefit from upcoming corporate actions.

Nigeria

• The NGX-ASI increased by 1.8% w/w to settle at 105,451.1 points, bringing the year-to-date and 30-day returns to 2.5% and 7.90% respectively. The bullish movement in the index was underpinned by gains in mid-to-large caps.
• Aggregate market turnover declined by 17.5% w/w to USD 43.7mn, with Geregu Power Plc dominating trading activity, accounting for 17.2% of the total value traded. Market breadth favoured gainers with a 62% ratio. Multiverse Plc(+53.4% w/w | NGN 12.4) led the gainers’ chart, while Equity Assurance Plc(-36.5% w/w | NGN 7.3) was the worst laggard.
• The Minister of Communications, Innovation, and Digital Economy has announced that telecom tariffs are expected to rise soon, though not by the previously reported 100%. Speaking after a stakeholders’ meeting with Mobile Network Operators (MNOs) on Wednesday in Abuja, the Minister emphasized the government’s commitment to finding a balanced approach. The government seeks to safeguard consumer interests while maintaining the viability of the telecom sector, which is critical for the economy’s digital transformation. We expect the implementation of the proposed tariff hike to have a positive impact on MTN Nigeria’s financial performance with support for revenue growth, partial cost absorption and strengthening its overall earnings.

Kenya

• The NSE-ASI increased by 2.6% w/w to settle at 129.6 points, bringing the year-to-date and 30-day returns to 5.0% and 15.0% respectively. The upward movement in the index was due to gains in mid-to-large caps.
• Aggregate market turnover surged by 360.9% w/w to USD 21.2mn, with Safaricom Plc dominating trading activity, accounting for 24.7% of the total value traded. Market breadth favoured gainers with a 62% ratio. Kenya Power & Lighting Ltd (+28.0% w/w | KES 6.9) led the gainers’ chart, while EA Portland Cement Ltd (-10.4% w/w | KES 27.5) was the worst laggard.
• Kenya’s economic growth decelerated to 4.0% year-on-year in 3Q2024, down from 6.0% in the same period of 2023, reflecting underperformance across several key sectors. Notably, construction activities contracted by 2.0%, while mining and quarrying posted a steep decline of 11.1%. Despite these setbacks, positive contributions from agriculture, forestry and fishing, transportation and storage, financial and insurance services, real estate, wholesale and retail trade, accommodation and food services helped cushion the economy from a sharper slowdown. The World Bank revised its 2024 economic growth forecast for Kenya downward to 4.7% from an initial estimate of 5.0%, citing challenges such as severe flooding, anti-government protests, and weak fiscal consolidation. However, the finance ministry remains more optimistic, estimating 2024 GDP growth at 5.2% and projecting a modest improvement to 5.4% in 2025.