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Tanzania: 2020 – the Best, the Worst Performing Stocks On DSE

tanzania 2020 the best the worst performing stocks on dse

JATU, an agri-based startup, has emerged to be the best performing stock on the Dar es Salaam Stock Exchange (DSE) this year.

Jatu is one of the four domestic listed companies whose shares gained on DSE this year. Others are CRDB Bank, Twiga Cement and NICO.

On the other hand, seven listed firms, led by Swissport, were the worst performers on the bourse after their shares depreciated while eleven stagnated for almost the entire year.

Jatu shares appreciated five times or by 438 per cent to close Monday’s session at 2,260/- from 420/- when listed over a month ago.

The firm, listed on the alternative market, in less than a month moved two slots from the smallest company in terms of market capitalization to third position.

Jatu, which had a market capitalisation of 1.08bn/- a month, jumped to 4.89bn/- as of Monday, thanks to a rapid share price appreciation.

Jatu overtook TaTePa now the smallest listed firm with 2.24bn/- and MuCoBa 3.26bn/-.

Stock market analysts attributed Jatu bullish trend to investors scrambling to attain membership that enables one to also participate in the firm’s farming project.

The sharp rise was itself a momentum of speculators to vie on the shares. Orbit Securities said in one of its weekly market reports that the mystery of the sharp rise in the Jatu price was mostly due to two main factors.

“One is the membership requirement to own at least 200 shares for one to be eligible to participate in the farming project. “With a limited number of shares, the requirement raises the counter’s price with a consideration that only 110 is enough to alter the counter’s price,” Orbit said on its weekly Market Synopsis report. CRDB Bank takes the second position as the best performing stock of this year.

The lender, one of the largest with a balance sheet of over 7.0tri/- , shares gained by 105.26 per cent in a year to close at 195/- on Monday.

CRDB, with 509.31bn/- market cap, was also one of the most traded shares on the bourse this year, changing position with TBL.

Twiga Cement was the third on the line after being appreciated by 25 per cent to 2,500/- in a year to Monday. The share gain lifted the firm’s market capitalization to 449.81bn/-.

NICO opened the year trading at 175/- but appreciated to close the Monday trading at 185/-. This equals a gain of 5.71 per cent change in a year thus pushing up its market capitalisation to 12.80bn/-.

On the other hand Swissport has been the worst performing stock this year after its share dipped 30 per cent to 1,120/- from 1,600/- at the beginning of the year. Its market capitalisation dropped to 40.32bn/-.

“Swiss has already fallen by 30 per cent since the beginning of the year following poor performance caused by a cut throat competition from NAS-Dar Airco,” Orbit report said.

Tanga Cement, Simba, was the second on list of worst performers this year after its stock lost by 16.67 per cent to 500/- and drag down with it market capitalisation to 31.84bn/-.

The DSE was the third on the list of most depreciated shares in this year after its stock went down by negative 10.20 per cent to 880/- followed by DCB Bank lost by 10.16 per cent to 265/-.

Vodacom Tanzania followed after losing by negative 9.41 per cent to 770/- compared to 850/- at the start of the year. The TCCIA Investment (TICL) sunk by minus 9.09 per cent to 350/- and TOL Gases was down by negative 8.33 per cent to 550/-.

The most stagnated stocks were from the main market where six out of the eleven failed to almost trade–TaTePa while others trade but price remained unchanged was NMB Bank.

However, on the alternative market most of the stocks remained inactive for the entire year namely Mwalimu Bank, Swala and MuCoBa.

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Nigeria: Fintech Research – Everything You Need to Know About Tech Companies and Its Stocks

nigeria fintech research everything you need to know about tech companies and its stocks

The tech industry comprises companies that sell devices, software, hardware, artificial intelligence, and other information technology (IT) products. These companies have always been profitable in terms of stock value.

Fintech research shows that the sector encompasses firms like Apple Inc. (AAPL), Microsoft Corp. (MSFT) and Amazon.com Inc. with the highest market cap stocks in the globe (AMZN).

Tech equity markets, defined by the SPDR ETF (XLK) Technology Select Group, have outscored the larger market. As of December 16, 2020, XLK has linked with an annualized profit of 43.3 percent, almost double the total return of 20.6 percent for the Russell 1000 over the previous 12 months.

With the facts given, tech stocks are a beneficial addition of choice for new or professional traders and investors who wish to earn through trading stocks. This article covers everything that readers may need to know about tech stocks and make wise decisions for themselves.

How are Tech Companies Progressing?

The phrase ‘tech companies’ includes all the businesses that are contributing to the technology sector. Since the world is continually transitioning to a more digital direction, tech companies are also growing with one of the highest stock success rates in the marketplace.

The tech companies are switching to a ‘software-as-a-service’ method, where clients purchase a programme subscription rather than a one-time licence. For the software industry, this creates a revenue stream with integrating semiconductor chips to drive the hardware.

Semiconductor organizations create or develop processing cores, processing units for graphics, computer chips, and a wide range of other chips that work their way into the gadgets of technology that hardware and software companies introduce in the market later.

Besides the tech companies, telecom businesses that provide telecommunications networks are also a part of the tech industry. So are the streaming media companies offering strong taste with quick access; and so are the users of cloud storage that support those cable channels.

The world is always in need of innovations, which shows that the tech industry will never be disadvantageous for investors.

List of Prominent Tech Stocks

Technology businesses are many of the world’s most successful firms. Here are some top tech stock companies.

The largest retail chain and significant cloud computing service company are Amazon.com (AMZN).

A prominent software corporation, individuals recognize Microsoft (MSFT) for its Windows PC software and Office productivity tools.

Apple (APPL)manufactures the iPhone, iPad, and Mac computers. They have the most extensive customer base, and intense customer loyalty means plenty of returning customers.

Intel (INTL) has been one of the world’s biggest semiconductor firms. Intel develops and manufactures PC and server CPUs and also specialized chips for applications such as artificial intelligence.

One of the dominant providers of corporate networking hardware that serves as the basis of the web is Cisco Systems (CSCO).

Netflix (NFLX) is the alpha player in the streaming video market, investing billions of dollars per year on entertainment to maintain its ever-growing customer base.

From over 2 billion subscriber numbers via Facebook, Instagram, Messenger, and WhatsApp, Facebook (FB) is the leading social media business.

The parent organization of the internet search giant Google (GOOG) and the famous Android phone system software is Alphabet.

The Fintech categorizes shares of FAANG together as Facebook, Amazon, Apple, Netflix, and Alphabet (Google). These businesses dominate their markets, and over a previous couple of decades, their stocks have posted excellent returns.

How To Recognize the Right Stock to Invest in?

Price-to- Earning Rule

The price-to-earnings ratio is a valuable indicator for mature tech firms delivering profits. Start dividing the share price by per-share yields to get a number that shows how strongly the market rates a company’s existing earnings. The greater the number, the more emphasis the market places on potential profitability.

Judge Growth Potentials

Most tech firms are not financially viable; one can’t measure them by the price-to-earnings calculation. For these newer businesses, sales growth is more important. So if individuals engage in anything untested, they should ensure if the stock has good growth potential.

It is also critical for unviable tech companies that their result changes from damages to gains. It will become more productive as a business develops, especially concerning the advertising & distribution expenses required to deliver value. If it is not, or if expenditure rises as a percentage of income, it might signal that something is off.

Conclusion

Considering a stock’s growth potential is vital for any investor or trader. A fruitful tech stock is one that trades at a fair valuation. The challenging part is effectively mapping out those growth opportunities.

If the investors fail to analyze stocks’ prospects properly, they may face the consequences because paying a premium for any stock will make sense only if the profits skyrocket in the years ahead.

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Tanzania: Dse to Close Year With Optimism

tanzania dse to close year with optimism
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THE Dar es Salaam Stock Exchange (DSE) is projected to close this year on an optimistic note, thanks to surging of Jatu price and block trades.

Debt market analysts’ projection based on Jatu, the latest entrant to the bourse, whose share rallied from day one to close last week at 2,060/- from 420/-.

Exchange activities are increasing pushed mainly by local investors’ participation despite end of the year festivals. Zan Securities Chief Executive Officer Raphael Masumbuko said in the Weekly Market Wrap-ups that the equity market was set to close the year on the optimistic note.

“We expect the market to close this year on the optimistic note, owing to a surge in Jatu price and block trades,” Mr Masumbuko said.

On a weekly basis, the Dar es Salaam equity market turnover surged 95.87 per cent to 1.85bn/-, while Tanzania Share Index (TSI) closed at 3,486.67 points, up by 0.12 per cent.

“The equity market recorded promising performance with an increase in market capitalisation and prices,” Mr Masumbuko said.

Jatu, the new counter continued rising, recording a 43.06-per cent increase to close at 2,060/-, which was the highest gain per week since when it was listed on the bourse almost a month ago.

On the other hand, Swissport and Twiga Cement decreased by 5.08 per cent and 1.57 per cent to close at 1,120/- and 2,500/-, respectively.

But, Jatu price increase offset Swissport and Twiga price decrease and pushed Tanzania Share Index (TSI) by 0.12per cent to close the week at 3,486.67 points.

For the week ending last Friday, TBL was a top market mover with 88.21 per cent of total turnover followed by Twiga and CRDB Bank by far.

All Share Index (DSEI) decreased by 0.42 per cent to close at 1,781.69 points caused by cross-listing price decrease.

Sectoral indices all closed down in seven days to Friday while the industrial and Allied Index (IA) closed at 4,821.48 points, 0.11 per cent down.

The Bank, Finance and Investment Index decreased by 0.02 per cent to close at 2,330.32 points while Commercial Services Index closed at 2,139.33 points, 0.12 per cent down.

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Nigeria: Govt Records 17.3% Shortfall in Companies’ Income Tax

nigeria govt records 17 3 shortfall in companies income

Against the backdrop of pressures on the Federal Government’s finances and 2020 budget revenue estimates, an indication has emerged that the government may have already recorded a shortfall of 17.3 per cent in the Company Income Tax, CIT, as at third quarter of 2020, Q3’20.

Also economy analysts say the sustained macroeconomic headwinds would likely affect the projected CIT in the fourth quarter, Q4’20.

The Federal Government had, in the budget 2020, projected to generate N1.798 trillion in the full year and N1.348 trillion by Q3’20 from the CIT. But a data from National Bureau of Statistics, NBS, obtained by Financial Vanguard show that actual CIT revenue realised for the period under review was N1.113 trillion, about N235 billion or 17.4 per cent shortfall from the 2020 budget target.

Economists and financial analysts have opined that the shortfall in income tax revenue is not unexpected in view of the global Coronavirus, COVID-19, which led to a nationwide lockdown and also a huge drop in oil price and oil revenue.

They, however, commended the listed companies for their resilience despite the economic headwinds while calling on government to provide necessary incentives to attract more companies to be listed on the Exchange.

Meanwhile, the Minister of Finance, Budget and National Planning Mrs Zainab Ahmed, had disclosed that the new Finance Bill would require only companies doing a turnover of over N100 million to pay 30 per cent CIT while companies with turnover of between N25 million and N100 million annually will pay 20 per cent.

“Our assessment is that any business that has a turnover of less than N25million needs that break, not being taxed so they can invest in their businesses. And we reduced the tax for medium-size businesses from 30 per cent to 20 per cent so they can have more resources that they can plough back in their business. These are the largest employers of labour. The federal and state governments have a total labour force of less than one per cent of the population,” Ahmed added.

Financial Vanguard analysis show that top 95 companies listed on the NSE in various sectors captured recorded N271.678 billion, thus accounted for 24.3 per cent of the actual revenue of N1.113 trillion from the companies’ income tax for the period under review.

Firm’s CIT

A review of the CIT from the companies listed on the Exchange shows that MTN Nigeria Plc led the list of top payers with N67.356 billion. It was trailed by Dangote Cement Plc recording N63.275 billion. GTBank occupied third position recording N25.068billion followed by Zenith Bank Plc recording N17.968billion and Access Bank Plc posting N 14.322billion.

Experts’ perspectives

Reacting to the shortfall in company income tax, Uche Uwaleke, a Financial Economist and Professor of Capital Market at the Nasarawa State University said: ” One doesn’t need to look far to see the cause of the shortfall in the CIT collection. COVID’19 is to be blamed with supply chains disruptions and lockdowns that accompanied it which negatively affected most companies’ revenue and bottom lines.

“Don’t forget also that the Collecting Agency, the Federal Inland Revenue Authority, FIRS, as part of COVID’19 response measures, granted extensions to companies with respect to filing tax returns.

“That companies listed on the Stock Exchange made a significant contribution to the tax revenue pool is no surprise. Listing ensures transparency and demands adequate reporting and full disclosure. Tax evasion is made difficult following listing on the Exchange and so, it is in the interest of the government that more companies get listed. The government can facilitate this by granting fiscal incentives to companies willing to be listed on the Exchange.”

Commenting as well, Mr Victor Chiazor, Analyst and Head of Investment at Fidelity Securities Limited, said: “The tax revenue projection by the government for 2020 was quite ambitious despite the fact that the country had a lot of companies outside the tax net.

“Its half year tax shortfall of N227 billion was much better than we projected as we expected a much higher shortfall owing to the economic lockdown and relatively slow economic activity triggered by the pandemic during the period in question.

“The fact that 63 companies on the NSE accounted for 30.4 per cent of the generated income tax shows that it is easier for the government to get its tax revenue from companies that are visible like those listed on the NSE and it needs to create more incentives like tax cuts and other waivers to attract other big firms to the Exchange in a bid to make its job of tax collection easy.”

In his projection for the year, Chiazor said: “Going into the full year, we do not expect the government to be able to achieve a 100 per cent in terms of its budgeted tax revenue for the period, but expect it to achieve a revenue collection of about 77 per cent amounting to N1.38 trillion for the full year.”

In his own comment, Mr David Adonri, Chartered Stock Broker and Executive Vice Chairman, HighCAP Securities Limited said: “Under-collection of company income tax by N227billion in first half, H1’20 against budget target is not surprising.

“Disruptions of Covid19 during H1’20, caused the deviation. It is a serious dent on the fiscal economy. It has sent government into excessive borrowing and deficit finance. Several projects and obligations have become underfunded.

“The contribution of companies listed on the NSE is interesting to note but it ought to be higher if the NSE is to serve as barometer for the economy. The effectiveness and ease of company tax collection will be enhanced if more companies are listed on the NSE because of the high levels of transparency and integrity of their disclosures. “Government can compel several companies which occupy commanding heights of the economy to list, so as to drive compliance with tax laws.”

Commenting on the government’s projection for the full year, Adonri said: “It is a herculean task for government to achieve the 2020 budget CIT target of N1.79trillion due to current socioeconomic situation. Covid19 is still raging, stagflation is at hand and insecurity remains at catastrophic level. Fiscal austerity and re-channeling of expenditure to critical sectors are the most sensible options for macroeconomic stability now.”

Reacting as well, Mr Sola Oni, Chartered Stockbroker and Chief Executive Officer, Sofunix Investment and Communications said: “A company’s income tax is a function of profitability. It is obvious that companies’ earnings will be reduced by the impacts of Covid-19 pandemic on business activities. Therefore, the shortfall of N227 billion in companies’ income tax of first half of 2020 is not unexpected.

“It is significant that 63 quoted companies accounted for 30.4 percent generated income tax by the government. This symbolizes one of the benefits of listing companies on the Nigerian Stock Exchange. A quoted company cannot evade tax as it must perform its corporate responsibilities and there is nowhere to hide.

“Government can attract quotable companies to the market through incentives such as granting of tax holiday and patronage of the company’s products and services.”

While reacting to government meeting its revenue projection for 2020, Oni said: “It is doubtful that government can achieve the target for tax going by the current inclement operating environment and its attendant effects on corporate earnings and Gross Domestic Product (GDP). “More so, virtually all performance indicators have been downgraded by renowned rating agencies, World Bank, International Monetary Fund (IMF) and other financial institutions.”

Vanguard News Nigeria

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Nigeria: NSE Market Capitalisation Hits N20 Trillion On Sustained Rally

nigeria nse market capitalisation hits n20 trillion on sustained rally

The market capitalisation of the Nigerian Stock Nigerian (NSE), which is the total value of all listed equities, hit a historic peak of N20.281 trillion yesterday, as investors increased demand for stocks to reposition for year-end seasonal trends and the much expected economic recovery in 2021.

This is the highest the market would record since 2008 when it peaked at N12.3 trillion before the meltdown. That meltdown brought the market value to about N6 trillion before it started recovery in later years.

However, the listing of Dangote Cement Plc in 2010 significantly lifted the market. The listing of MTN Nigeria Plc, Airtel Africa Plc last year and BUA Cement Plc early this year added more boost to capitalisation of the exchange, which set the pace for yesterday’s historic peak.

The market, which gained N1.334 trillion last week, consolidated on the positive performance this week by gaining N1.048 trillion in three days to close yesterday at N20.281 trillion.

The market capitalisation grew from N19.236 trillion to N20.281 trillion or 5.4 per cent in three days, while the NSE All-Share Index appreciated from 36,804.75 to 38,803.74.

After gaining N1.334 trillion last week, market analysts were upbeat that the market would remain bullish this week.

According to analysts at Greenwich Trust Research, “the market will likely remain upbeat buoyed by end-of-year portfolio re-balancing by fund managers, or even the “Santa-Rally”. We, however, do not rule out intermittent profit-taking that could slow down the uptrend in the market.”

Similarly, analysts at Cordros Research said in the short term, they still see scope for expansion in valuation multiples as the hunt for alpha-yielding opportunities, in the face of increasingly negative real returns in the fixed income market, remains positive for stocks.

Analysts at InvestData Consulting said there have been positive sentiments for value, growth and highly capitalised stocks with attractive valuation, as investors reposition for year-end seasonal trends and the much expected economic recovery in 2021.

“The bull run shows that smart money is still in the market. The ongoing Santa Claus rally is attributed to window dressing for year-end among institutional investors, even as bonuses are entering the market ahead of the New Year, as some investors are taking advantage of the tax code by selling positions they have taken losses at the end of December to buy-back in January,” they said.

The analysts said although the inflationary trend remains a source of serious concern across the country, the equity market has so far provided a safe haven, with the NSE ASI returning 44.7 per cent year-to-date, remaining the only investment window that has outperformed inflation.

“The news of the federal government ordering the reopening of the nation’s borders is expected to add more momentum to factors driving the equity prices, going forward. Such factors, including the high liquidity in the system, low yields environment in the fixed income market, uptrend in oil price, the discovery of a vaccine for COVID-19, and the expected early passage of the 2021 budget have supported the positive sentiment in the market so far,” InvestDat said.

Commenting on the last week’s market performance, a stockbroker and Chief Executive Officer, Sofunix Investment and Communications Limited, Mr. Sola Oni, had said investment in money market instruments and fixed income securities were not attractive because of their negative returns due to low yield and double-digit inflation.

“Investors would naturally opt for where they can generate optimal profit.

At the moment, equities are about the major option that can meet investment objectives of many discerning investors. Our stock market is forward looking. Investors have realised that third quarter (Q3) results of many companies have signalled better performance for the year end results, which will begin to roll in as from early 2021. Therefore, sustained massive demand for equity is not unconnected with investors’ anticipation of higher dividend payout and possible declaration of bonus shares . Portfolio re-alignment is going on in favour of equity investment. We should also appreciate that investment in equity can be used as a hedge against inflation,” Oni said.

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South Africa: Oil Markets Were Among the Great Disruptors of 2020

south africa oil markets were among the great disruptors of 2020
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The BIG disruptor, of course, was a certain virus that wreaked havoc with the global economy. But the response by some markets and sectors of the economy to the ‘Great Lockdown’ was more disruptive than others.

First published in the Daily Maverick 168 weekly newspaper

Global oil markets stand out in this regard. In April, futures contracts for West Texas crude plunged into negative territory for the first time, fetching close to minus $40 a barrel. This was a buyer’s wet dream – sellers were paying them to take the barrels off their hands. Think of the classic O. Henry short story The Ransom of Red Chief.

Buyers were only briefly paid to acquire oil, and the price in December broke through $50 a barrel – as in that was the price that buyers had to pay sellers – but that underscores the wild ride that oil markets have taken this year. And it is a ride that has sloshed through the pipes of the global economy, potentially reshaping it for decades to come.

In November, global consultancy PwC forecast in a far-reaching report that global oil demand would “never again exceed 2019 levels”.

“Spurred on by the Covid-19 global…

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Nigeria: NSE Launches Platform to Ease Public Offerings’ Subscription

nigeria nse launches platform to ease public offerings subscription

The Nigerian Stock Exchange (NSE) has launched the X-PO, an online platform for the subscription of public offerings (POs) following the “No Objection” letter received from the Securities and Exchange Commission (SEC).

According to the NSE, the X-PO, the first end-to-end online public offerings platform in Africa, was designed to enhance the experiences of stakeholders in the public offerings value chain, by providing a smarter and efficient way to manage public offers in the Nigerian capital market.

As a self-service portal, X-PO allows investors to conveniently subscribe and make payments for public offers through the web and mobile (USSD), avoiding the hassle of physical completion and submission of public offering applications forms and visiting the bank for payment.

Speaking on the development, the Chief Executive Officer, NSE, Mr. Oscar Onyema, said: “The launch of the X-PO platform reinforces The exchange’s commitment to revolutionise stakeholders’ experience in the Nigerian capital market leveraging technology. The X-PO has been designed to enhance the efficiency of PO subscription process and operational workflow to support Issuers in raising capital and enhance the reach of POs while promoting financial inclusion and retail investors’ participation inthe market. Furthermore, X-PO will accelerate the reconciliation and allotment process for POs, as well as reduce the incidence of unclaimed dividends, thereby boosting investor confidence in the capital market.”

He said the exchange would continue to innovate and adapt to new technologies that will not only help companies improve operational efficiency, but also enhance corporate governance which is paramount for sustainable business operations.

“The launch of the X-PO is particularly timely given the new normal occasioned by the COVID-19 pandemic. The platform’s sustainable approach affirms NSE’s commitment to deploying environmentally friendly business practices and promoting paperless public offer subscriptions. We have also taken into consideration the vital need for privacy and data protection, deploying the highest levels of security to ensure that stakeholders can enjoy a safe and secure digital public offeringexperience,” Onyema added.

He stated that players within the capital market, investors, registrars, issuing houses, brokers, banks and regulators, can expect to enjoy a wide range of benefits with the launch of X-PO.

Meanwhile, the market maintained its gaining streak yesterday as the NSE All-Share Index (ASI) rose by 1.2 per cent to settle at 37,893.61, following gains by Dangote Cement Plc, United Bank for Africa Plc and Zenith Bank Plc. Market capitalisation added N235.4 billion to close at N19.8 trillion.

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Kenya: Homeboyz Makes NSE Listing With 63.2 Million Shares

kenya homeboyz makes nse listing with 63 2 million shares
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Homeboyz Entertainment Plc has officially listed its shares on the Nairobi Securities Exchange (NSE) market on Monday, coming just two months after founder Mike Rabar announced that it would make the move before the end of the year.

The company made its debut on the bourse by listing 63.2 million shares, becoming the first entertainment company in the country to enter the stocks market.

The directors of the company are listed as Mike Rabar (36.5 million shares), Rose Rabar (27.6 million shares) and John Rabar (20,000 shares).

On October 26, during the launch of the Building Bridges Initiative (BBI), Mr Rabar revealed plans to list on the NSE.

“It’s always been tough, it was never meant to be easy, but we are up to the task,” he said on Monday during the official listing ceremony.

He reminisced about creating the company from scratch from a bedroom in South B, while he was a university student selling music cassettes to other learners and matatu operators.

“Over time, Homeboyz has grown to employ over 200 young people whose livelihoods fully depend on the growth and sustenance of this informal sector. So it’s not been easy building a sustaining informal business in the environment that we are in if more so now than ever,” Mr Rabar said.

He said listing on the bourse would offer the firm a proper opportunity to improve its corporate governance, as well as supporting small businesses and the youth through investing in them and capacity building.

“This listing is a promising development in our country, it gives credence to the commitment that we have towards supporting companies explore the NSE as a venue of raising capital,” said NSE chief executive Geoffrey Odundo today.

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Rwanda: MTN Rwanda to List On Stock Exchange

rwanda mtn rwanda to list on stock

MTN Rwanda will list its shares on the Rwanda Stock Exchange by way of introduction in early 2021, the firm has confirmed.

MTN Rwanda is one of the country’s most profitable companies having made a profit of about Rwf6.8 billion in profit after tax in 2019 and total revenue of about Rwf125 billion. In 2018, the firm had a profit of Rwf7.7 billion.

Listing by introduction is often preferred by firms already in another exchange. This occurs when a company lists its existing shares on an exchange.

JUST IN: @MTNRwanda has announced it intends to list shares by way of introduction on the Rwanda Stock Exchange (RSE) in early 2021. pic.twitter.com/sX8Wmc2kEF

– The New Times (Rwanda) (@NewTimesRwanda) December 21, 2020

Given that said company is listing shares that had already been fully paid for, the aim of listing by introduction is not to raise capital immediately, but could serve the purpose later. It also allows for transfer of ownership.

This will bring the total number of firms on the Rwanda Stock Exchange to 11.

MTN Rwanda has two main shareholders, MTN Group Limited and Crystal Telecom Limited which holds 20 per cent shares in the firm.

The development will see the 20 per cent stake held by Crystal Telecom held directly by the public.

While 100 per cent shares of MTN Rwanda will be listed on the stock exchange, the 20 per cent stake held by Crystal Telecom will be available for trading by the public. MTN Group will hold the 80 per cent shares.

Crystal Telecom is scheduled to provide details on what the development means for holders of their shares.

“The listing reaffirms our commitment to Rwanda. This is a transformative event in the MTN story, and one that we are certain we could not have reached without the support of our stakeholders, partners and customers,” said MTN Rwanda CEO Mitwa Ng’ambi.

The listing is expected to broaden public ownership over time, supporting sustainable growth for national development.

MTN Group President and Chief Executive Officer Ralph Mupita said that the development is a step towards increasing local participation in the company, and building the capital markets in Rwanda.

The listing is subject to applicable regulatory and governance approvals as well as conducive market conditions.

The firm is projecting revenue growth in 2020 of about 12 per cent buoyed by increased Mobile Money and data usage.

cmwai@newtimesrwanda.com

Follow https://twitter.com/ByCollinsMwai

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Nigeria: Investors Gain N1.3 Trillion as Stock Market Rises to N19 Trillion

nigeria investors gain n1 3 trillion as stock market rises to n19 trillion

The Nigerian stock posted another record performance last week as market indicators hit new highs while investors gained N1.334 trillion in five days.

The continued flow of funds into the stock market on the back of investors’ continued search for attractive returns pushed the market capitalisation from N17.092 trillion to N19.236 trillion, while the Nigerian Stock Exchange (NSE) All-Share Index (ASI), rose from 34,250.74 to 36,804.75 or 7.46 per cent, which are new highs.

The stock market has gained N6.321 trillion year-to-date, appreciating from N12.915 trillion to N19.236 trillion.

In the face of negative returns in the money market and fixed income securities, the equities market has remained investors’ preference for some months now.

That high demand was sustained last week with the market gaining in all the five trading sessions.

According to analysts at Greenwich Trust Research, investors resumed bargain-hunting last week in search of competitive returns as yields, though improved, remained unattractive in the fixed income space, considering the sustained inflationary pressure in the economy.

“In light of this, the sentiment in the market was strongly bullish and broad-based, reinforced by last (previous) week’s decline in the market which presented buying opportunities for counters trading at relatively attractive prices.

Next (this) the market will likely remain upbeat buoyed by end-of-year portfolio re-balancing by fund managers, or even the “Santa-Rally”. We however do not rule out intermittent profit-taking that could slow down the uptrend in the market,” they said.

Analysts at Cordros Research said in the short term, they still see scope for expansion in valuation multiples as the hunt for alpha-yielding opportunities, in the face of increasingly negative real returns in the fixed income market, remains positive for stocks.

“However, we advise investors to take positions in only fundamentally justified stocks as the weak macro environment remains a significant headwind for corporate earnings,” they said.

Commenting on the market performance, a stockbroker and Chief Executive Officer, Sofunix Investment and Communications Limited, Mr. Sola Oni, said investment in money market instruments and fixed income securities are currently not attractive because their negative returns due to low yield and double-digit inflation.

“Investors would naturally opt for where they can generate optimal profit. At the moment, equities are the major option that can meet the investment objectives of many discerning investors. Our stock market is forward-looking. Investors have realised that third quarter (Q3) results of many companies have signaled better performance for the year-end results which will begin to roll in as from early 2021. Therefore, sustained massive demand for equity is not unconnected with investors’ anticipation of higher dividend payout and possible declaration of bonus shares. Portfolio re-alignment is going on in favour of equity investment. We should also appreciate that investment in equity can be used as a hedge against inflation,” Oni said.

Looking ahead, analysts at InvestData Research, said they expect the positive trend to continue depending on the interplay of market forces, as traders and investors interpret the impact of funds rotation and the current dividend yields provided by the pullbacks and bargain hunters take advantage of the situation to reposition. According to them, investors should, at this point, target solid stocks selling at discount in the midst of the ongoing cautious trading, portfolio diversification ahead of seasonal trends and expectations.

” A breakout of 36,000 points will confirm a new uptrend as the market awaits the circular flow of funds to settle in higher yields instruments with a shorter timeframe, while waiting to see the impact of the adjustment in CBN policies. A breakout of this resistance level will create buy opportunities for discerning traders and investors. Also important is the fact that technical indicators reveal overbought on the weekly and daily chart.

“The strong and faster recovery may continue, depending on market forces, going forward, as propelled by the quality of Q3 earnings presented, especially by the tier-1 banks, even as analyses of numbers released so far have helped to reposition investors’ portfolios on the strength of sectoral and company’s performances.”