KES feeble despite CBK intervention as Britam succumbs to distribution activities

The bourse registered mixed performance on the key indicators with the NSE-20 share index sliding by 0.03% to 5055.00 points while the NASI spanned by 0.06% to 171.70 points.

Market capitalization edged higher by 0.06% to KES 2.40Tn as equity turnover followed suit; 16.55% up to KES 477.71Mn. East African Breweries Ltd (NSE: EABL) & British-American Investments Co (Kenya) Ltd (NSE: BRIT) were the most active counters accounting for 52.81% of the day’s traded value.

British- American Investments was the day’s biggest mover with 2.4Mn shares having traded during the day. The share price regressed further after going through a losing streak over the last couple of days to close the day at KES 21.75. The company restated their earnings with their after-tax profits dipping by 342Mn (12.05%) translating to an EPS of KES 1.39 from KES 1.47 while their return on shareholders’ equity stood at 11.68%. This was attributable to a reduction in their share of profit from associate by 66.57% on account of some unmentioned issues arising from their local associates. The company continues facing downside momentum on the share price as a result of distribution activities from foreign investors. This trend may persist in the short term, as the company continues facing litigation on the Mauritian case.

Foreign investor participation was steady during the last trading session of the week with foreigner’s accounting for 58.71% of total turnover against 41.29% local participation. Investors remained dominant on the supply side, resulting in net outflows worth KES 10.55Mn compared to net outflows worth KES 59.08Mn on Friday.

The highlights of the day’s trading activity are listed below
Foreign investors accounted for 58.71% of the NSE turnover as compared to 71.65% on Friday.

Investors engaged in distributive activities recording net outflows worth KES 10.55Mn relative to net
outflows worth KES 59.08Mn on Friday.

East African Breweries Limited (NSE: EABL) was the day’s highest traded stock, recording a turnover of
KES 192.57Mn to account for 40.31% of total market activity and 68.66% of foreign activity. Equity Bank
Limited (NSE: EQTY) followed with a turnover of KES 25.04Mn representing 5.24% of total market activity
and 8.93% of foreign activity.

Safaricom Limited (NSE: SCOM) posted the day’s highest inflows of KES 7.21Mn as investors
accumulated ahead of full year result announcement in May, whilst British American Investments (NSE:
BRIT) posted the day’s highest outflows worth KES 21.23Mn.

Currency
Performance: The Kenyan Shilling (KES) remained at three year lows during Tuesday’s trading session despite CBK’s intervention in the money market yesterday where the bank sold an undisclosed amount of US Dollars to curb exchange rate volatility.

Trader’s noted that rising corporate dollar demand may undermine the KES even further over the next two days. Regionally, the largest fall was reported against the South African Rand (ZAR) as the local unit shed 0.69% as the ZAR strengthened overnight.

However, the ZAR quite quickly relinquished some ground against the dollar on Tuesday after strong gains in the previous session as traders expected it to take its cue mainly from global market moves for most of the session. Meanwhile, the Euro (EUR) strengthened mainly boosted by renewed optimism of a solution to Greece’s debt problems.

Large-Cap Index
The Large Cap index dipped by a further 0.17% while market capitalization appreciated by a marginal 0.01% to KES 2.03Bn. Volume of traded shares was down 4.36% to KES 8.45Mn.

• Centum Investment Co Ltd (NSE: ICDC) was marginally up; 1.64% to KES 62.00 ahead of the FY15 results announcement slated for next month.

• British- American Investments Co. (Kenya) Ltd (NSE: BRIT) shaved 2.25% to KES 21.75. The company
  restated their FY14 earnings leading to a decline in their PAT by KES 342Mn.

Mid-Cap Index

The Mid Cap index remained flat as market capitalization went up; 0.55% to KES 270.37Bn. Volume
of trades escalated by a hefty 74.34% to 3.58Mn.

• Liberty Kenya Ltd (NSE: CFCI) was up 5.38% to KES 24.50.

• Uchumi Supermarket Ltd (NSE: UCHM) slashed 4.23% of its value to a Vwap of KES 10.20.

Small-Cap Index

The Small Cap Index lost 0.72% with market capitalisation contracting by 0.79% to KES 38.96Bn.

• Sameer Africa Ltd (NSE: FIRE) was a notch higher; 7.55% to KES 5.70 reversing yesterday’s momentum.

• Standard Group Ltd (NSE: SGL) closed in the red, down; 5.00% to a Vwap of KES 33.25.