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.