Rwanda market watch

Rwanda’s financial markets have seen a surge in activity, with the Bralirwa stock leading the charge in performance. Market turnover has increased to 62.8 million Francs as of last week, indicating a positive trend in market movements. To delve deeper into this and other recent market activities, Cyrus Gaperi, Investment Research Analyst at BK Capital, provided valuable insights in an interview with CNBC Africa. Starting off with the fixed income sector, Gaperi highlighted that last week saw no auctions for Treasury bills, with the latest auction reporting a subscription rate of 423%, a slight decrease from the previous rate of 450%. However, Treasury bills continue to remain oversubscribed, with Treasury bonds also showing strong performance. The subscription rate for Treasury bonds stood at an impressive 554.4% last month, continuing a positive trend from March. The issuance of a new 10-year bond in April contributed significantly to this growth. In terms of yields, all T-bills saw a decline, with the 364-day T-bill witnessing a 110 basis points drop. Moreover, Gaperi noted that investor appetite remained strong, with the 28-day and 182-day papers being oversubscribed by 450%, followed by the 91-day and 364-day papers, which recorded subscription rates of 400% and 397.7% respectively. Moving on to stock market analysis, Gaperi highlighted that market turnover increased to 73.1 million Francs last week, with notable activity on the BK Group and Body Rock counters. The BK Group counter accounted for 56% of the market turnover, followed by the Body Rock counter at 43%. Despite overall market stagnation, the share index showed gains, with the all share index increasing by 1.4% and 35.6 basis points on the month. Gaperi also pointed out that one index recorded a 1.2% jump to close at 328.42 points. Looking ahead, Gaperi mentioned that MTN was a counter to watch due to increased bids and expected movement. Discussing the impact of the trade war between China and the U.S., Gaperi emphasized the importance of monitoring currency depreciation and inflation. The Rwandan Franc depreciated against the dollar, reflecting global trade uncertainties. However, Gaperi noted that Rwanda had only faced a 10% tariff initially, which was paused, minimizing direct trade impact. He advised vigilance on inflation trends, citing global growth concerns and central bank responses in neighboring countries like Kenya and Tanzania. Ultimately, Gaperi stressed the need to diversify trade partners and adapt to changing market dynamics. As markets navigate through uncertain times, the resilience and adaptability of African economies will play a crucial role in mitigating risks and fostering growth.