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Rwandan equities market review
Rwanda Stock Exchange recently gained a new player, MTN Rwanda, which became the first telecommunications company to list on the bourse. The exchange now has 10 players trading in equities. CNBC Africa spoke with Olivier Muneza, CEO of Mo Capital for more.
Fri, 14 May 2021 16:43:01 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- Investors are taking their time to analyze the new listings such as MTN Rwanda on the Rwanda Stock Exchange
- INDEM bank counter remains stable amidst corporate transactions with shareholders advised to hold onto their shares
- Cimaro Stok trading under CMR attracts attention with expectations of a 16% increase in the construction sector
The Rwandan equities market has been abuzz with activity following the recent listing of MTN Rwanda, the first telecommunications company to join the Rwanda Stock Exchange. With about 10 players now actively trading in equities, investors are carefully analyzing the new opportunities presented by these listings. Olivier Muneza, CEO of Mo Capital, shared insights on the market dynamics during a recent interview on CNBC Africa. The market response to MTN Rwanda's listing has been a topic of interest, with Muneza highlighting the need for investors to take their time in evaluating the company before making investment decisions. He stressed the importance of conducting thorough analyses and due diligence on the new listing, indicating that it is natural for investors to proceed cautiously when dealing with a company that is new to the market. While acknowledging MTN Rwanda's strong position as one of the top three most profitable companies in the country, Muneza emphasized the distinction between a good company and investor decision-making. He noted that investors may have varying factors influencing their investment choices, and it is essential to give them time to assess and respond to the new listings. In response to a question on strategies to expedite investor decisions in the market, Muneza highlighted the shift towards investors delving deeper into company data and financials to make informed choices. He anticipated that in the coming weeks or months, there would be increased demand for MTN Rwanda's shares as investors gain more insight into the company's potential. Moving on to the performance of INDEM bank counter, Muneza shed light on the stability of the stock amidst ongoing corporate transactions. He advised shareholders to hold onto their shares, citing anticipated bonuses for existing shareholders as a reason to maintain their positions. With the bank's plans to increase its capital and expand operations, Muneza suggested that now is a favorable time to hold onto INDEM bank shares. As for Cimaro Stok trading under CMR, Muneza addressed concerns about the lack of bids despite positive projections for the construction sector. He explained that investors often take a holistic view of the market and may prefer to stagger their investments over time, rather than making immediate decisions. The construction sector's expected growth of up to 16% by the end of the financial year offers a promising outlook for Cimaro Stok, attracting attention from investors looking to capitalize on the sector's potential. Overall, the Rwandan equities market is witnessing a period of transition and adjustment as new listings and market dynamics shape investor behavior. As stakeholders navigate the evolving landscape, careful consideration and strategic decision-making remain key to maximizing opportunities and managing risks in the equities market.
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