Ghana

• The GSE-CI increased by 3.1% w/w to settle at 5,056.0 points last week, bringing the year-to-date and 30-day returns to 3.4% and 7.4% respectively. The index advance was underpinned by gains in Scancom Plc, Ghana Oil Company, Calbank Plc,  Total Petroleum Ghana and Ghana Commercial Bank.
• Aggregate market turnover surged by 966.8% w/w to USD 0.50mn, with Scancom Plc dominating trading activity, accounting for 89.4% of the total value traded. Market breadth favoured gainers with a 5:0 ratio. Scancom Plc (+5.6% w/w | GHS 2.65) led the gainers’ chart, while no laggard was recorded for the period.
• The Minister-designate for Finance reaffirmed his commitment to abolishing the electronic transfer levy (e-levy) during his ministerial vetting on Monday, January 13, 2025. Following the announcement, MTN Ghana’s stock price surged, reflecting heightened investor confidence. We expect the removal of the e-levy to significantly reduce barriers for mobile money users, fostering higher transaction volumes and revenue growth for MTN Ghana. The announcement attracted both local and foreign demand for the stock, further bolstering its price performance. Looking ahead, we anticipate sustained investor interest in fundamentally strong, dividend-paying stocks, as the market approaches the release of FY2024 results.

Nigeria

• The NGX-ASI declined by 2.9% w/w to settle at 102,353.7 points, bringing the year-to-date loss to 0.6% and 30-day returns to 4.33%. The bearish movement in the index was underpinned by losses in mid-to-large caps.
• Aggregate market turnover plunged by 32.0% w/w to USD 29.5mn, with Guaranty Trust Holding Co Plc dominating trading activity, accounting for 18.9% of the total value traded. Market breadth favoured decliners with a 64% ratio.  Neimeth International Pharmaceuticals (+31.4% w/w | NGN 3.4) led the gainers’ chart, while  Universal Insurance Co Plc (-19.2% w/w | NGN 0.6) was the worst laggard.
• Nigeria’s headline inflation increased for the fourth consecutive month in December, reaching 34.80% year-on-year from 34.60% in November, driven by persistent pressures on key economic sectors. Food inflation, a major contributor to overall price levels, stood at 39.84% year-on-year in December, marginally lower than the 39.93% recorded in the prior month. The Nigerian government anticipates a significant reduction in inflation to 15% by year-end, supported by reduction in imports of petroleum products. We anticipate that the government’s policy focus on reducing petroleum imports will unlock significant opportunities for NGX-listed oil and gas firms. This shift will enhance the domestic market share and drive improved revenue streams, particularly for companies with robust local production capabilities and efficient operations.

Kenya

• The NSE-ASI inched up by 0.9% w/w to settle at 130.8 points, bringing the year-to-date and 30-day returns to 5.9% and 12.7% respectively. The upward movement in the index was due to gains in mid-to-large caps.
• Aggregate market turnover plummeted by 33.4% w/w to USD 14.1mn, with Safaricom Plc dominating trading activity, accounting for 23.4% of the total value traded. Market breadth had an equal proportion of gainers and decliners with a 1:1 ratio. HF Group Plc (+54.8% w/w | KES 9.0) led the gainers’ chart, while CFC Stanbic Holdings Ltd (-10.7% w/w | KES 140.3) was the worst laggard.
• The Kenyan Treasury has outlined a budgetary allocation of KSh 1.82 billion in its draft policy targeting the regulation of digital assets, including cryptocurrencies. This initiative aims to mitigate risks such as money laundering, tax evasion, cybersecurity threats, and data privacy concerns, while fostering financial innovation. The draft policy allocates KSh 1 billion for developing a comprehensive legal and regulatory framework to govern the digital asset market, KSh 400 million to promote financial innovation and enhance literacy within the virtual asset ecosystem, KSh 300 million to address cybersecurity vulnerabilities and data privacy violations in the crypto market, and KSh 120 million for consumer protection mechanisms and secure operations in the digital asset space. If implemented effectively, we expect this policy to enhance investor confidence and drive financial literacy.