This archive report was first published on 6 July 2020.
As the Covid-19 pandemic continues to affect economies globally, the Rwanda Stock Exchange (RSE) has seen growth in its activities, with two new companies set to list on the exchange.
According to RSE chief executive Celestin Rwabukumba, the approval process for the local firms from the industrial sector to sell shares to the public is at an advanced stage.
South African healthcare-focused investment firm RH Bophelo Ltd cross-listed on the RSE a month ago, on June 1, and is primarily listed on the Johannesburg Stock Exchange.
“We have just had a cross-listing from South Africa in early June. I expect to see more companies come to the market. We have four transactions in the pipeline this year, of which two are at advanced stages in terms of approvals. These two companies are ready and can come onto the market at any time,” said Mr Rwabukumba.
However, he noted that investors are likely to be cautious with the stock market due to the pandemic, which has caused foreigners to sell off their investments in emerging markets and opt for bonds instead.
“There has been activity in the fixed income segment, while in the equity market there have also been trades but not as much. Going forward, it will depend on how this pandemic behaves and how fast economic activities pick up,” he said.
According to data from the RSE, equity turnover on the Rwandan bourse for the first six months of the year declined by 84.72 per cent to Rwf384.94 million ($398,813) compared with Rwf2.51 billion ($2.6 million) in the same period last year.
However, bond turnover more than doubled to Rwf12.24 billion ($12.68 million) from Rwf5.95 billion ($6.16 million).
