KES Gains 1.23% to the GBP as UK Budget Announced

The main indices rose in today’s session with the NSE 20 share index spanning 28.52 points to 5,342.36 points while the NASI edged higher by 0.37% to 172.63 points. Market capitalization broadened by KES 8.95 Billion to KES 2.41Tn as equity turnover shed 30.67% to KES 0.66 Billion worth of traded shares on the back of East African Breweries Ltd (NSE: EABL) & Safaricom Ltd (NSE: SCOM) shares that accounted for 43.59% of the day’s traded value.

Cooperative Bank of Kenya Ltd (NSE: COOP) announced its FY14 results for the period ended 31st December whereby pre-tax earnings excluding exceptional items span 14.1% as non-funded incomes grew 16.7% to KES 10.81 Billion underpinned by a resolute 21.7% growth in fees & commissions to KES 8.71 Billion. Net interest income similarly broadened 14.2% to KES 21.28 Billion on the back of a 30.9% leap in net loans & advances to KES 179.49 Billion. Despite a higher tax bracket of 30% taking effect in 2014, management resolved to hold final DPS at KES 0.50 with 20th May provided as the company’s book closure date. The move however grossed a lower dividend yield of 2.4% in comparison to the banking sector’s average of 2.8%, with investors accelerating distribution activities that saw the counter retreat 1.22% for the day to close at a Vwap of KES 20.25.

Foreign investor participation declined during Wednesday’s trading session with foreigner’s accounting for 45.76% of total turnover from 27.89% registered on Tuesday. Foreign investors were dominant on the selling side; resulting in net outflows worth Kes 63.39Mn compared to net outflows worth 16.42Mn on Tuesday.

Foreign investors accounted for 45.76% of the NSE turnover from 27.89% recorded on Tuesday.

Investors engaged in profit taking activities recording net outflows worth Kes 63.39Mn relative to outflows worth Kes 16.42Mn on Tuesday.

East African Breweries Limited (NSE: EABL) was the day’s highest traded stock, recording a turnover of Kes 134.68Mn to account for 20.45% of total market activity and 44.28% of foreign activity. Safaricom Limited (NSE: SCOM) followed with a turnover of Kes 64.97Mn representing 9.86% of total market activity and 21.55% of foreign activity.

Safaricom Limited (NSE: SCOM) posted the day’s highest inflows of Kes 8.86Mn, whilst East African Breweries Limited (NSE: EABL) posted the day’s highest outflows worth Kes 45.76Mn.
Currency

Performance: The shilling portrayed mixed sentiments against major international peers during Wednesday’s trading. Its largest gain of 1.23% was recorded against the Sterling Pound (GBP) as the currency ratio strengthened to 134.66 following George Osborne’s, Chancellor of the Exchequer, announcement of his the last budget in the run-up to the upcoming May general elections as the Bank of England warned a stronger Pound could increase chances of the low inflation regime persisting. The USDKES pair gained 0.33% to settle at 91.95 as the Central Bank offered KES 9Bn in repurchase agreements with further pressure expected from declining tea output – Kenya’s largest export earner.