Rwandan market update

Rwanda’s equities market has started the week on a positive note, with a significant increase in turnover to RWF1.8 billion. This surge in activity has been attributed to the recent release of financials, with companies like Bled Irwa declaring dividends of 100% of PFT, attracting more investors to the market. The market has seen fluctuations in prices, with counters like Bled Irwa moving from 1.80 to 1.85, and similar movements expected from other companies announcing dividends. The treasury bills have also been oversubscribed by 168.8%, showcasing strong investor appetite despite reduced yields. This oversubscription for the third consecutive month indicates a liquid market. On the currency front, the Rwandan franc has been stabilizing against the US dollar, with a marginal depreciation expected to continue. The recent high of 1,296.4 against the dollar has been influenced by developments in the US market, where the Federal Reserve has hinted at potential rate cuts. This could lead to further appreciation of the Rwandan franc. The Rwanda All Share Index gained 0.3%, primarily driven by Bradley Ruwa, with positive movement seen in other listed stocks as well. Eight out of ten stocks analyzed have performed better than the risk-free rate, indicating market liquidity and potential for growth. With the anticipation of Q1 earnings releases, market activities are expected to pick up further, with companies like Bank of Kigali set to announce dividends. This influx of earnings is likely to drive more investments, increase market turnovers, and propel the stock market on an upward trajectory.