Rwanda market update

Rwanda’s equities and fixed income markets have seen a slight dip in market turnover, but with significant movements in the Bank of Kigali (BK) and Bralirwa counters. CNBC Africa recently spoke with Kevin Karobia, Senior Investment Research Analyst at BK Capital, to delve into the market dynamics and expected movements. Last week, the equities market saw Bank of Kigali gaining 1.6% while MTN Rwanda experienced a 1.8% decline. Bralirwa saw active turnover without notable price movements. On the fixed income front, Treasury bills remained oversubscribed at 118.1%, indicating a liquid market. The government's plan to raise funds through a 15-year paper is expected to receive significant bids.\n\nKarobia highlighted that expectations of a solid dividend payout and continued earnings growth are driving the demand for Bank of Kigali stock. Similarly, Bralirwa's double-digit dividend yield is attracting investor interest, positioning the stock for sustained growth. Despite the oversubscription of T-bills and the active trading around BK and Bralirwa, the Rwanda franc has been strengthening. The upcoming Monetary Policy Committee (MPC) meeting will focus on balancing intervention to attract foreign capital while monitoring inflation, which has risen to 7.4%.\n\nWhile tensions in East Africa, notably between Rwanda and the DRC, may impact trade dynamics, the currency movements have been stable. Trade balances against Uganda and Kenya have shown minor fluctuations, but no major spillover effects have been observed. Investor sentiment remains strong on banking and telecommunication counters, with a focus on dividend predictability and potential market developments. As the markets remain resilient, investors are positioning themselves in anticipation of upcoming full-year results and potential regulatory changes.