Ghana

• The GSE-CI declined by 0.4% w/w to settle at 4,347.0 points last week, bringing the year-to-date returns to 38.9% and 30-day loss to 0.03%. The decline in the index was underpinned by a loss in the blue-chip stock, Scancom Plc.
• Aggregate market turnover slumped by 69.3% w/w to USD 0.2 mn, with Ghana Commercial Bank dominating trading activity, accounting for 55.7% of the total value traded. Market breadth had equal proportion of gainers and decliners with a 1:1 ratio. Ghana Commercial Bank (+2.5% w/w | GHS 6.15) was the sole gainer, while Scancom Plc (-0.9% w/w | GHS 2.15) was the sole laggard.
• The Bank of Ghana has revised its year-end inflation target to 18%, signaling concerns over potential upside risks stemming from various global geopolitical tensions. This adjustment was announced by the governor during a joint press briefing with the International Monetary Fund (IMF) and the Ministry of Finance, following the successful conclusion of the IMF’s third review under the Extended Credit Facility (ECF) programme. Also, Moody’s has upgraded Ghana’s long-term local and foreign currency issuer ratings, elevating them from “Caa3” and “Ca” to “Caa2.” This upgrade reflects the positive impact of the country’s extensive debt treatment, which has significantly alleviated its financial pressures. The credit ratings agency cited Ghana’s progress in restructuring its debt burden as a key driver for the rating improvement, which has bolstered fiscal stability. In tandem with the ratings upgrade, Moody’s also adjusted the outlook from “stable” to “positive,” indicating the potential for a further easing of liquidity risks. On the stock market GGB Plc announced that the company directors will be recommending to the shareholders the payment of a final dividend of GHS0.022 per share for the financial year ended June 30, 2024. Ex-dividend date has been set as Thursday, October 24,2024.

Nigeria

• The NGX-ASI increased by 0.1% w/w to settle at 97,606.6 points, bringing the year-to-date and 30-day returns to 30.5% and 0.8% respectively. The bullish movement in the index was underpinned by gains in mid-to-large caps.
• Aggregate market turnover increased by 7.4% w/w to USD 18.9mn, with United Bank for Africa Plc dominating trading activity, accounting for 13.8% of the total value traded. Market breadth favoured decliners with a 65% ratio. Regency Alliance Insurance (+57.9% w/w | NGN 0.7) led the gainers’ chart, while Daar Communication Plc (-25.0% w/w | NGN 0.6) was the worst laggard.
• The Central Bank of Nigeria (CBN) has formalized Memoranda of Understanding (MoUs) with regulatory authorities in countries hosting Nigerian bank subsidiaries. This initiative aims to enhance regulatory coordination and ensure compliant and secure operations both domestically and internationally. According to the Acting Director of Corporate Communications, this strategic collaboration allows the CBN to maintain effective oversight, supporting the stability and resilience of the Nigerian banking sector.

Kenya

• The NSE-ASI increased by 1.7% w/w to settle at 110.1 points, bringing the year-to-date and 30-day  returns to 19.6% and 5.4% respectively. The upward movement in the index was due to gains in mid-to-large caps.
• Aggregate market turnover dipped by 11.2% w/w to USD 6.9mn, with Safaricom Plc dominating trading activity, accounting for 52.4% of the total value traded. Market breadth favoured gainers with a 53% ratio. Kenya Orchards Ltd (+32.9% w/w | KES 44.1) led the gainers’ chart, while Express Kenya Ltd (-9.7% w/w | KES 3.2) was the worst laggard.
• The Monetary Policy Committee (MPC) has lowered the central bank rate to 12%, citing a continued decline in overall inflation, which is projected to remain below the mid-point of the target range in the near term. This reduction is supported by stable food prices, improved supply from ongoing harvests, a stable exchange rate, and lower fuel inflation. Additionally, non-food non-fuel inflation has moderated and is expected to stay stable. The MPC also noted a significant deceleration in private sector credit growth and a slowdown in economic activity in 2Q2024, concluding that easing monetary policy would help stimulate economic growth while maintaining exchange rate stability.