Evaluating RSE’s performance over the past six months

The Rwanda Stock Exchange has experienced a surge in activity on both the equities and bond markets in the second quarter of 2021, attracting more investor interest. Celestin Rwabukumba, the CEO of the exchange, discussed the performance and trends in a recent interview with CNBC Africa. Rwabukumba highlighted that the market had seen increased movement, particularly in the equities sector. Investor activity in both primary and secondary markets had picked up, with a focus on adjusting portfolios. He credited the listing of MTN Rwanda as a significant driver of market momentum, making it the largest domestic counter on the exchange. The discussion shifted to retail investor participation, especially in companies like MTN that are perceived as sound investments. Rwabukumba explained that while the listing of MTN had generated excitement, existing investors were pleased with the performance of the stock. He noted that blue-chip companies like Bank of Kigali were also retaining investor interest, with shareholders holding onto their positions. In the bonds market, Rwabukumba pointed out that there had been significant activity on the secondary market, contributing to the overall positive performance of the exchange. While the equities market had shown improvement, the bonds market still held strong, driven by consistent liquidity and fixed income investors holding their positions. The CEO acknowledged the presence of more institutional investors in the market, emphasizing their long-term perspective compared to retail investors who might react more swiftly to market changes. He highlighted the trend of retail investors moving towards collective investment schemes, which offered managed products and a more cost-effective way to invest. One key topic of discussion was the listing of SMEs on the Rwanda Stock Exchange. Rwabukumba confirmed that the process was ongoing, with the platform ready for SMEs to join the market. He mentioned an upcoming investment clinic that would support SMEs in becoming investor-ready, hinting at the possibility of seeing some SMEs listing by the third or fourth quarter of the year. Overall, the Rwanda Stock Exchange's performance in the second quarter of 2021 has been marked by increased investor interest, active trading in both equities and bonds, and continued efforts to attract SME listings. With a positive outlook for the coming months, the exchange is poised for further growth and development.