Ghana

• The GSE-CI ticked up by 0.6% w/w to settle at 4,694.7 points last week, bringing the year-to-date and 30-day returns to 50.0% and 7.8% respectively. The index advance  was underpinned by gains in Ecobank Transnational Inc,  Scancom Plc and Total Petroleum Ghana
• Aggregate market turnover plunged by 51.2% w/w to USD 0.1mn, with Scancom Plc dominating trading activity, accounting for 91.7% of the total value traded. Market breadth favoured gainers with a 3:0 ratio. Ecobank Transnational Inc.(+11.5% w/w | GHS 0.29) led the gainers’ chart, while no laggard was recorded for the period.
• Demand for the banking and telecom sector stocks has seen notable improvement across the bourse, driven by increased participation from local retail investors and offshore buyers. MTNGH has garnered heightened interest, signaling strong investor confidence in the stock. We anticipate potential upward price movement for MTNGH, underpinned by sustained demand, despite the prevailing uncertainties surrounding the upcoming elections this week.

Nigeria

• The NGX-ASI inched down by 0.3% w/w to settle at 97,506.9 points, bringing the year-to-date return to 30.4% and 30-day loss to 1.20%. The decline in the index was underpinned by losses in mid-to-large caps.
• Aggregate market turnover increased by 23.4% w/w to USD 20.0mn, with FBN Holdings Plc dominating trading activity, accounting for 43.3% of the total value traded. Market breadth favoured decliners with a 60% ratio. Equity Assurance Plc (+23.4% w/w | NGN 3.9) led the gainers’ chart, while Austin LAZ Co Plc (-26.3% w/w | NGN 2.0) was the worst laggard.
• The Monetary Policy Committee (MPC) of Nigeria’s Central Bank unanimously delivered a 25bps increase in the Monetary Policy Rate (MPR) to 27.5% as the authorities expressed particular concerns about persistence of price pressures. Given the impressive pace of reserves accumulation, partly aided by the CBN’s less frequent market intervention sales, we view the MPC’s proposal for increased market liquidity as a potential trigger for enhanced FX sale to the market in the coming weeks. Additionally, the introduction of Bloomberg BMATCH System for all FX trading will enhance market efficiency, transparency and price discovery for medium-term Naira stability. This should further stimulate offshore interest in the Nigeria market as FX convertibility risk reduces for non-resident investors.

Kenya

• The NSE-ASI declined by 1.1% w/w to settle at 111.5 points, bringing the year-to-date return to 21.1% and 30-day loss to 2.6% respectively. The downward movement in the index was due to losses in mid-to-large caps.
• Aggregate market turnover surged by 116.1% w/w to USD 17.4mn, with Safaricom Plc dominating trading activity, accounting for 62.0% of the total value traded. Market breadth favoured decliners with a 54% ratio. Uchumi Supermarkets Plc (+10.5% w/w | KES 0.2) led the gainers’ chart, while Kenya Electricity Generating (-13.5% w/w | KES 3.5) was the worst laggard.
• The Capital Markets Authority (CMA) has granted approval for Safaricom Plc to launch the Ziidi Money Market Fund (MMF), an innovative investment vehicle aimed at reshaping Kenya’s capital markets landscape. According to CMA, the fund will be seamlessly integrated into the M-Pesa platform, providing Safaricom customers with an accessible and convenient avenue to grow their wealth through capital markets investments. To facilitate this initiative, Safaricom has collaborated with three key fund managers: Standard Investment Bank, ALA Capital Limited, and Sanlam Investments East Africa Limited, leveraging their expertise to ensure effective management and delivery of the MMF. This development underscores Safaricom’s strategic expansion into financial services while promoting financial inclusion. We expect this initiative to strengthen customer loyalty and expand Safaricom’s user base, enhancing top-line growth. The MMF underscores Safaricom’s fintech growth strategy, driving positive investor sentiment and valuation upside.