Kenyan Shilling Gains on South African Rand as Rates Left Unchanged

Currency

The Kenyan Shilling (KES) ended the week on a mixed note against all major currencies during Friday’s trading session. The USDKES exchange rate shed 0.29% due to heightened end month corporate demand to meet payment obligations coupled with continued USD global strengthening that extended for a second day. The KES gained against the Sterling Pound (GBP) by 0.06% to 137.42 as polls continue to indicate the tightly run election with the prospect of Britain’s first minority government in decades. Furthermore, the Kenyan Shilling gained 1% against the South African rand (ZAR) to 7.68 as the Reserve Bank maintained rates at 5.75%, though it signalled that inflationary pressures were narrowing its scope to pause on hiking.

Equities

Friday’s trading registered mixed sentiments whereby the NSE 20 share index retreated by 10.39 points to 5,242.35 points as the NASI spanned 0.25% to 174.16 points. Market capitalization was in tandem with the NASI, edging up KES 6.04 Billion to KES 2.43Tn, as equity turnover declined by 24.31% to KES 1.01 Billion worth of traded shares steered by Kenya Commercial Bank Ltd (NSE: KCB) & East African Breweries Ltd (NSE: EABL) shares that accounted for 61.89% of the day’s traded value.

Housing Finance Co (K) Ltd (NSE: HFCK) announced its FY14 results whereby pre-tax earnings dipped 4.2% to KES 1.42 Billion impaired by 38.4% attrition in non-funded income to KES 0.84 Billion. Net interest income shored up 18.8% to KES 3.03 Billion buoyed by positive market reception of the Ezesha home loans product that saw loans & advances broaden by 28.5% to KES 45.24 Billion. The lender announced a final DPS of KES 1.50; 14.3% decline in comparison to that of FY13 and informing distribution activities on the counter; down 1.96% for the day to KES 37.50. The results came hot in the heels of its highly successful 1-for-2 rights issue that registered an oversubscription of 157% and saw the mortgage financier raise KES 9.01Billion against a target of KES 3.5Billion.

Foreign investor participation marginally declined during Thursday’s trading session with foreigner’s accounting for 72.93% of total turnover from 49.82% registered on Thursday. Investors engaged in accumulative activities; resulting in net inflows worth KES 45.51Mn compared to net inflows worth KES 143.53Mn on Thursday.

• Foreign investors accounted for 72.93% of the NSE turnover as compared to 49.82% on Thursday.

• Investors engaged in accumulative activities recording net inflows worth KES 45.51Mn relative to inflows worth KES 143.53Mn on Thursday.

• Kenya Commercial Bank Limited (NSE: KCB) was the day’s highest traded stock, recording a turnover of KES 456.78Mn to account for 45.43% of total market activity and 62.30% of foreign activity. East African Breweries Limited (NSE: EABL) followed with a turnover of KES 151.50Mn representing 15.07% of total market activity and 20.66% of foreign activity.

• British-American Investments Limited (NSE: BRIT) posted the day’s highest inflows of KES 20.08Mn, whilst Equity Group Holdings Limited (NSE: EQTY) posted the day’s highest outflows worth KES 7.88Mn.

• The total index gained 0.27% with five segments advancing whilst the remaining seven segments declined.

• The Agricultural services segment took pole position up 2.17% as Kakuzi Ltd (NSE: KUKZ) garnered 9.92% to a Vwap of KES 277.00.

• The Energy & Petroleum segment was the worst performer contracting 2.18% as KenGen Co. Ltd (NSE: KEGN) shed 6.57% to a Vwap of KES 9.95.

Large-Cap Index

The Large Cap index was down 0.04% as market capitalisation shored up to KES 2.05Tn. Volume of traded shares contracted by half to 18.40Mn from yesterday’s close of 36.76Mn

• Centum Investment Co. Ltd (NSE: ICDC) soldered 5.88% to KES 63.00 following resolution of the Rea Vipingo acquisition with the investment company locking in a KES 2Billion deal with REA Trading in exchange of 10,546 acres of Rea Vipingo land.

• Mumias Sugar Co. Ltd (NSE: MSC) shed 4.26% for the day to edge lower towards KES 2.25.

Mid-Cap Index

The Mid Cap index shrank 0.88% as market capitalization tapered 1.99% to KES 272.49Bn from KES 278.03Bn.

• Nairobi Securities Exchange Ltd (NSE: NSE) expanded 2.05% for the day to a Vwap of KES 19.95 following its resounding FY14 results announcement that saw pre-tax earnings shore up by 16.4% to KES 441.81 Mn.

• KenGen Co. Ltd (NSE: KEGN) weighed on the index; down 6.57% to KES 9.95.

Small-Cap Index

The Small Cap Index rose 0.75% as market capitalisation span 1.28% to KES 39.89Bn.

• Williamson Tea (K) Ltd (NSE: WTK) rose 9.96% to mark the day at a Vwap of KES 287.00 buoyed by a small but significant volume of 200 shares.

• E.A. Portland Cement Co. Ltd (NSE: EAPC) diminished 3.39% for the day to a Vwap of KES 57.00