Daily Market Watch: Foreign Investor Inflows Props KES

All indicators fell in today’s session whereby the NSE 20 share index declined by 50.03points to 5,411.05 points as distribution activities on majority counters took centre stage. The NASI slid 0.3% to 172.28 points, chalking down market capitalization to Kes 2.405Tn. Equity turnover similarly regressed, going down 31.38% to Kes 1.37Bn worth of traded shares on the back of

Equity Group Holdings (NSE: EQTY) & East African Breweries Ltd (NSE: EABL)shares that accounted for 50.5% of the day’s traded value. Carbacid Investments Ltd (NSE: CARB) announced its 1H15 results for the period ended 31st December whereby turnover declined by 13.4% owing to subdued demand in key export markets of Central and Eastern Africa. Increased operating costs in addition to higher mining royalties introduced in the fiscal year exacerbated operating profit margins to 53% down from 55% one year prior. Factoring in logistics and costs incurred drawn from declaring two dividends in a year, management resolved a nil payment as interim DPS down from Kes 0.40 in 2014. The change in policy fanned distribution activities on the counter with Carbacid falling 3.03% for the day to Kes 24.00.

Foreign investor participation slightly decreased during Thursday’s trading session with foreigners accounting for 49.88% of total turnover against 50.12% local participation. Foreign investors were dominant on the selling side; resulting in net outflows worth Kes 149.48Mn compared to net outflows worth 1.29Bn on Wednesday.

Foreign investors accounted for 49.88% of the NSE turnover down from 57.63% on Wednesday.

Investors sustained profit taking activities recording net outflows worth Kes 149.48Mn relative to outflows worth Kes 1.29Bn on Wednesday.

East Africa Breweries Limited (NSE: EABL) was the day’s highest traded stock recording a turnover of Kes 276.75Mn to account for 20.24% of total market activity and 40.58% of foreign activity. Equity Group Holdings Limited (NSE: EQTY) followed with a turnover of Kes 154.30Mn representing 11.25% of total market activity and 22.63% of foreign activity.

Centum Investment Company (NSE: ICDC) posted the day’s highest inflows of Kes 16.70Mn, whilst Equity Group Holdings Limited (NSE: EQTY) posted the day’s highest outflows worth Kes 115.69Mn.

The total index shed 0.44% with four segments advancing and eight segments declining.

The Telecommunications & Technology segment took pole position up 1.62% as its only constituent, Safaricom Limited (SCOM), garnered 1.62% to a Vwap of Kes 15.70.

The Commercial and Services segment was the worst performer contracting 1.71% as Nation Media Group shed 3.47% to a Vwap of Kes 250.00.

Currency

Performance: The USDKES pair held relatively steady only marginally weakening by 0.02% to 91.17 as the KES firmed up from foreign investor inflows whilst chasing yields on government debt. Furthermore, Central Bank sought to mop up KES 6 billion from the money markets, plopping up the KES. The local currency gained against the Sterling Pound (GBP) as the Bank of England’s March policy brief is set to be released with expectations of no immediate hike in interest rates but tentatively in early next year. Further gains were extended by the KES against the Euro (EUR) as the European Central Bank meets in Cyprus set to elaborate details on the Quantitative Easing program.

Large-Cap Index

The Large Cap tapered by 0.12% as market capitalisation clawed back to Kes 1.997Tn. Volume of traded shares simmered down to 23.8Mn from yesterday’s close of 42.3Mn

Mumias Sugar Ltd (NSE: MSC) reversed previous days momentum edging up 8.00% to Kes 2.70.

Barclays Bank Kenya Ltd (NSE: BBK) regressed 3.83% to Kes 16.30 ahead of tomorrow’s full-year earnings announcement.

Mid-Cap Index

The Mid Cap index shrunk 0.74% as market capitalization wavered by 0.59% to Kes 286Bn from Kes 287.7Bn

Longhorn Kenya Ltd (NSE: LKL) went up 1.11% for the day to a Vwap of Kes 9.10.

Uchumi Supermarkets Ltd (NSE: UCHM) weighed on the index; down 3.20% to Kes 10.60

Small-Cap Index

The Small Cap Index shortened 1.31% as market capitalisation went under by 1.26% to Kes 42.39Bn from Kes 42.93Bn.

Eaagads Ltd (NSE: EGAD) rose 1.32% to mark the day at a Vwap of Kes 38.50.

Crown Paints Kenya Ltd (NSE: BERG) diminished by 9.29% for the day to a Vwap of Kes 127.00 on a small but significant volume of 500 shares.