Safaricom Hits an All-Time High of KES 16.00

Tuesday’s trading activities picked up steam with the NASI surging by 0.32% to 172.57points while the NSE 20 Share index followed an opposite trend toning down 0.21% of its value to 5254.60 points with 16 stocks declining whilst only 15 stocks advanced. Market capitalization expanded marginally by 0.32% from KES 2.40 Trillion to KES 2.41 Trillion as equity turnover spanned by 37.07% with Equity Group Holdings Ltd (NSE: EQTY) & Kenya Commercial Bank Ltd (NSE: KCB) shares as the most actively traded shares accounting for 40.77% of the day’s value.

Safaricom Ltd (NSE: SCOM) closed at an all-time high of KES 16.00 since its listing in 2008 securing it as the largest counter by market capitalization (currently standing at 641.05Bn). Safaricom has grown in leaps and bounds since its listing on the bourse, as depicted by its bottom line growth of 118.45% with KES 10.53 Billion after tax profits posted in FY09 and currently capping at KES 23.02Bn for the year ended March 2014. The Telco giant has remained an attractive investment especially to the foreign investors due to its stable dividend policy, retained at 80% dividend payout. We anticipate good results from the company ahead of its year end, this month, hence holding it as a favorable stock pick in the run up to its earnings release. The share price has gained 14% YTD setting it as the most profitable stock going by its consistent share price returns.

Foreign investor participation marginally declined during Tuesday’s trading session with foreigner’s accounting for 44.50% of total turnover from 44.89% registered on Monday. The trend reversed as investors engaged in accumulative activities; resulting in net inflows worth KES 102.45Mn compared to net inflows worth KES 59.56Mn on Monday.

Foreign investors accounted for 44.50% of the NSE turnover as compared to 44.89% on Monday.

Investors engaged in accumulative activities recording net inflows worth KES 102.45Mn relative to inflows worth KES 59.56Mn on Monday.

Equity Group Holdings Limited (NSE: EQTY) was the day’s highest traded stock, recording a turnover of KES 81.70Mn to account for 10.60% of total market activity and 23.83% of foreign activity.

Kenya Commercial Bank Limited (NSE: KCB) followed with a turnover of KES 59.20Mn representing 7.68% of total market activity and 17.26% of foreign activity.

Equity Group Holdings Limited (NSE: EQTY) posted the day’s highest inflows of KES 81.70Mn, whilst Kenya Commercial Bank Limited (NSE: KCB) posted the day’s highest outflows worth KES 55.55Mn.

Currency

Performance: The USD KES pair gained by 0.20% to 91.75 as the inflows for the infrastructure bond strengthens the shilling. The shilling weakened against the Sterling Pound (GBP) by 0.11% to 137.15 following the previous day’s gains spurred by data indicating that the inflation rates dropped to zero in February, with increased optimism that the Bank of England shall not alter the record low rates. Furthermore, the EURKES shed 0.69% to 100.74 as European Union officials assess Greece’s third set of economic policy proposals in line with extension of aid under previous agreements.

Large-Cap Index

The Large Cap index continued on the downtrend cutting back 0.24% from yesterday’s close as market capitalisation shored up to KES 2.02Tn. Volume of traded shares followed suit to mark at 23.40Mn from yesterday’s close of 13.98Mn. CIC Insurance Group Ltd (NSE: CIC) leaped by 3.24% to KES 9.55 buoyed by increased investor confidence. Kenol Kobil Ltd (NSE: KENO) shoved down shedding 4.10% to KES 9.35 spurred by distribution activities.

Mid-Cap Index

The Mid Cap index soared by 0.19% as market capitalization expanded marginally by 0.06% to KES 280.70Bn from KES 280.54Bn. Total Kenya Ltd (NSE: TOTL) appreciated by 3.92% for the day to a Vwap of KES 26.50 on account of speculative activities in the run up to its earnings release expected in the course of next month. Kenya Airways Ltd (NSE: KQ) weighed on the index; down 2.25% to KES 8.70.

Small-Cap Index

The Small Cap Index lost ground by 0.72% as market capitalisation contracted by 0.41% to KES 39.87Bn. Eaagads Ltd (NSE: EGAD) was a notch higher, up; 2.70% to mark the day at a Vwap of KES 38.00. Eveready East Africa Ltd (NSE: EVRD) closed in the red, down; 6.33% for the day to a Vwap of KES 3.70.