KES weakens as British retail sales go up

In Thursday’s trading NSE 20 share index rescinded by 22.36 points to 5,252.74 points as the NASI went up 0.39% to 173.73 points. Market capitalization was in tandem with the NASI, edging up KES 9.52 Billion to KES 2.43Tn, as equity turnover more than doubled from Wednesday to KES 1.33 Billion worth of traded shares steered by Safaricom Ltd (NSE: SCOM) &Equity Group Holdings Ltd (NSE: EQTY) shares that accounted for 42.20% of the day’s traded value. Standard Chartered Bank (K) Ltd (NSE: SCBK) announced its FY14 results whereby pre-tax earnings span 7.4% to KES 14.35 Billion as non-funded incomes grew 15.6% to KES 8.17 Billion underpinned by 140.8% jump in other income to KES 2.28 Billion.

Despite loans & advances trimming by 5.3%, net interest income broadened 6.8% to KES 17.90 Billion owing to an improvement in NIMs by 30bps to 9.71%. The lender announced a final DPS of KES 12.50; 13.8% decline in comparison to KES 14.50 paid out in FY13. Consequently, the counter clawed back 0.58% to KES 340.0 despite total DPS paid-out in 2014 going up 17.2% to KES 17.00. With a current dividend yield of 5.0% against the sector’s average of 3.0%, accumulation activities are expected to exacerbate in the run-up to its undisclosed book closure date.

Foreign investor participation marginally declined during Wednesday’s trading session with foreigner’s accounting for 49.82% of total turnover from 32.17% registered on Wednesday. Investors engaged in accumulative activities; resulting in net inflows worth KES 143.53Mn compared to net outflows worth KES 37.69Mn on Wednesday.

Foreign investors accounted for 49.82% of the NSE turnover as compared to 32.17% on Wednesday.

Investors engaged in accumulative activities recording net inflows worth KES 143.53Mn relative to outflows worth KES 102.45Mn on Wednesday.

Safaricom Limited (NSE: SCOM) was the day’s highest traded stock, recording a turnover of KES 173.62Mn to account for 13.07% of total market activity and 26.24% of foreign activity. Equity Group Holdings Limited (NSE: EQTY) followed with a turnover of KES 120.49Mn representing 9.07% of total market activity and 18.21% of foreign activity.

Equity Group Holdings Limited (NSE: EQTY) posted the day’s highest inflows of KES 63.47 Mn, whilst East African Breweries Limited (NSE: EABL) posted the day’s highest outflows worth KES 13.23Mn.

Currency

Performance: During Thursday’s trading session, the Kenyan Shilling (KES) weakened against major international peers. The KES weakened 0.62% against the Euro (EUR) to 101.41 following release of new data indicating that German Business confidence was up with Eurozone business activity near a four-year high in March. The KES further weakened against the Sterling pound as retail sales rose 0.7% in February from a month earlier to 5.7%. The ZARKES pair gained by 0.22% to 7.76 ahead of an interest rate decision by South African’s central bank.

Large-Cap Index

• The Large Cap index dipped 0.2% as market capitalisation shored up to KES 2.04Tn. Volume of traded shares protracted to 36.76Mn from yesterday’s close of 21.46Mn

• CIC Insurance Group Ltd (NSE: CIC) bolstered by 2.59% to KES 9.90 as bargain hunters took advantage of the insurer’s recent decline to accumulate holdings.

• KenolKobil Ltd (NSE: KENO) shed 2.99% for the day to edge lower towards KES 9.75.

Mid-Cap Index

• The Mid Cap index shrank 0.19% as market capitalization tapered 0.45% to KES 278.03Bn from KES 279.29Bn.

• Carbacid Investments Ltd (NSE: CARB) reversed yesterday’s momentum; expanding 3.70% for the day to a Vwap of KES 21.00

• National Bank (K) Ltd (NSE: NBK) weighed on the index; down 3.00% to KES 24.25 ahead of tomorrow’s book closure date for its 1-for-10 bonus share issuance.

Small-Cap Index

• The Small Cap Index lost 0.15% as market capitalisation shed 0.24% to KES 39.39Bn.

• E.A. Portland Cement Ltd (NSE: EAPC) rose 6.31% to mark the day at a Vwap of KES 59.00 buoyed by a small but significant volume of 300 shares.

• Kakuzi Ltd (NSE: KUKZ) diminished 10.0% for the day to a Vwap of KES 252.0