Foreign investors dominate the Kenyan Equities Market i August as net sellers

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The Kenyan equities market was on an upward trend in the month of August 

The NSE 20, NASI and NSE 25 gaining 6.0 percent, 4.8 percent and 3.8 percent, respectively, taking their YTD performance as at the end of August to 26.9 percent, 26.4 percent and 25.6 percent for NASI, NSE 20 and NSE 25, respectively.

The equities market performance during the month was driven by gains in large caps, led by KCB Group, Coop Bank and Equity Group, which gained 10.4%, 8.9% and 7.4%, respectively. Since the February 2015 peak, the market has lost 4.7% and 26.8% for NASI and NSE 20, respectively.

Equities turnover declined by 17.1% during the month to USD 170.1 mn from USD 205.0 mn in July 2017, taking the YTD turnover to USD 1,166.8 mn. Foreign investors remained net sellers for this month with net outflows of USD 35.7 mn, compared to net outflows of USD 19.7 mn witnessed in July 2017. YTD, foreign investors are net sellers with net outflows of USD 60.4 mn.

“We expect the market to record subdued activity over the coming few weeks with reduced volumes as market players are cautious of the renewed uncertainty. Despite this, we expect the market to remain supported by improved investor sentiment once the country takes to the polls for the presidential elections within 60-days, and fears and uncertainty dissipates, and as investors take advantage of the attractive stock valuations. For a comprehensive analysis on the impact of the election ruling on the business environment,” notes Cytonn Invstments.

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