KES holds relatively steady against major international peers

The main indices edged higher in today’s session with the NSE 20 share index broadening by 20.50 points to 5,275.10 points while the NASI soldered 0.28% to 173.05 points. Market capitalization shored up KES 6.68 Billion to KES 2.42Tn as equity turnover rescinded by 15.42% to KES 652 Million worth of traded shares on the back of British American Investments Ltd (NSE: BRIT) & East African Breweries Ltd (NSE: EABL) shares that accounted for 25.75% of the day’s traded value.

KenolKobil Kenya Ltd (NSE: KENO) announced its FY14 results for the period ended 31st December whereby pre-tax earnings jumped 169.7% to KES 1.52 Billion despite 17.0% retreat in topline revenue. Strategic focus on high margin business segments was responsible for the oil marketer’s trim in top-line revenues but translated in higher gross margins 5.53% (FY14) vis-à-vis 3.89% (FY13) and a reduction in the OMC’s cash conversion cycle to 40 days (41 days – FY13); alleviating pressure on short-
term debt requirements to manage working capital. Shareholder returns (ROE) spiked to 15.59% from 8.52% with management doubling payment in DPS to KES 0.20. This in tandem translated to a dividend yield of 1.99% as book closure for dividend payment was set for 7th May 2015 with payment of the same to fall on or about 5th of June 2015. Following the news, the counter was up 7.49% to close the day at a Vwap of KES 10.05.

Foreign investor participation marginally declined during Wednesday’s trading session with foreigners accounting for 32.17% of total turnover from 44.50% registered on Tuesday. Investors engaged in profit-taking activities; resulting in net outflows worth KES 37.69Mn compared to net inflows worth KES 102.45Mn on Tuesday.

Foreign investors accounted for 32.17% of the NSE turnover as compared to 44.50% on Tuesday.

Investors engaged in profit-taking activities recording net outflows worth KES 102.45Mn relative to inflows worth KES 102.45Mn on Tuesday.

East African Breweries Limited (NSE: EABL) was the day’s highest traded stock, recording a turnover of KES 45.38Mn to account for 6.96% of total market activity and 21.64% of foreign activity. British-American Investments Limited (NSE: BRIT) followed with a turnover of KES 43.19Mn representing 6.63% of total market activity and 20.60% of foreign activity.

British-American Investments Limited (NSE: BRIT) posted the day’s highest inflows of KES 21.71Mn, whilst East African Breweries Limited (NSE: EABL) posted the day’s highest outflows worth KES 32.25Mn.

Currency

Performance: The KES held relatively steady against major international peers during Wednesday’s trading session; drawing support from continuous CBK mop ups as well as foreign investor inflows trickling from the auction of the 12-Year infrastructure bond which took place today. Yesterday the CBK sold REPOs and TADs worth KES 10.4 billion to arrest regression of the KES. The USDKES exchange rate strengthened marginally by 0.05% to stand at 91.70 (12:30pm GMT), whilst slight weakening was reported against the Euro (EUR) where the local currency shed 0.05%.

Meanwhile, the KES fared poorly against regional currencies, reporting the largest loss of 0.43% against the South African Rand (ZAR). The ZAR posted steady gains during the day’s trading session spurred by positive sentiments ahead of the South African Reserve Bank’s policy statement tomorrow- expected not to offer any surprises.

Large-Cap Index

The Large Cap index broadened 0.43% as market capitalisation shored up to KES 2.03Tn. Volume of traded shares rescinded to 21.46Mn from yesterday’s close of 23.40Mn

KenolKobil Ltd (NSE: KENO) soldered by 7.49% to KES 10.05 buoyed by positive investor sentiment following its full year earnings disclosure.

Mumias Sugar Co. Ltd (NSE: MSC) shed 4.08% for the day to edge lower towards KES 2.35.

Mid-Cap Index

The Mid Cap index shrank 0.55% as market capitalization rescinded 0.50% to KES 279.29Bn from KES 280.70Bn.

Jubilee Holdings Ltd (NSE: JUB) span 1.97% for the day to a Vwap of KES 570.00 spurred by favourable FY14 earnings disclosure in addition to its 1-for-10 bonus share issuance.

Carbacid Investments Ltd (NSE: CARB) weighed on the index; down 6.90% to KES 20.25 as poor 1H15 earnings continue to plague the counter.

Small-Cap Index

The Small Cap Index lost 0.78% as market capitalisation shed 0.99% to KES 39.48Bn.

Eveready E.A. Ltd (NSE: EVRD) rose 8.11% to mark the day at a Vwap of KES 4.00

Car & General Ltd (NSE: C&G) diminished 9.90% for the day to a Vwap of KES 45.50.