The stock market’s ups and downs won’t affect its trading

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Rwanda stockExchange

The current trends on the stock market that tilts to a downward trend is the normal changes in demand and supply, Celestin Rwabukumba, chief Executive Officer ofRwanda stockExchange said

The local bourse has been recording a down word and constant trends for the past weeks causing worry as to whether the market   would slowly move to a bear market.

According to Investopedia, a ‘Bear Market’ is a market condition in which the prices of securities are falling, and widespread pessimism causes the negative sentiment to be self-sustaining.

“This is normal as we have no fundamental change in all our companies listed here.   I think this is just a normal market behavior of supply and demand, “Rwabukumba noted

He adds, “So, it is the market it goes up and down.”

The change in the stock prices indicates the feel investors have over the company’s worth. This implies that when more people went to buy a stock which is the demand than sell it off which is supply the price moves up.

On the other hand, when   more people want to sell a stock than actually buy it, increases the supply on the stock market whichtherefore push the price down.

On Thursday, the RSI went down 7.74 points closing at 230.49 while ALSI also went down 1.97 points to closing at 135.75.

By end of trading hours ,  the BK counter  share   price  closed at Rwf 300 constant from  the  previous share  price  on  Wednesday   registering a quiet  trading session. Bralirwa share price closeat Rwf370 down   compared to the previous share price that closed at Rwf 393 while the  trading session recorded a total turnover of Rwf 1,127,500 from 3,000 Shares.

The trading session recorded no transaction on KCB, NMG and Uchumi Supermarket Limited counters.

At the ring of the last bell, there were outstanding offers of 43,100 BK shares between Rwf 299-320 and outstanding bid of 1,000 shares at Rwf 280. On Bralirwa counter, there were outstanding offers of 19,000 shares between Rwf 375-425 and no outstanding bids.

On   the KCB counter, an outstanding bid of 5,100 shares at Rwf 180 and no outstanding offers were recorded with   the USL counter recording anoutstanding offer of 6,000 shares at Rwf 104 and no outstanding bids.

Whilst,   RSE bond market on Thursday  recorded  an outstanding bid of 5,00,000 at Rwf 100 and an outstanding offer of 100,000 at Rwf 102 from government bonds(FXD 3/2014/5yr) RW000A1ZN2X8.

 

About the author

Olive Ndaka is the Junior Editor for RwandaEye. An investor and young entrepreneur, she is a quick learner and has contributed many articles for RwandaEye in Kinyarwanda.

More posts by | Visit the site of Ndaka

 

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