On the first trading day of the week, market activities were downtrodden with the volumes traded cutting back by 61.06% to 11Mn.
Both the advancers and decliners were at par (17) while the rest of the counters remained unchanged. The NSE-20 share index retreated by 0.10% to 5056.27 points while the NASI shaved 0.56% to 171.59 points. Market capitalization slumped by 0.52% to KES 2.40Tn as equity turnover followed suit; 54.38% down to KES 409.87Mn. East African Breweries Ltd (NSE:EABL) & Kenya Commercial Bank Ltd (NSE: KCB) were the most active counters accounting for 39.58% of the day’s traded value.
The equities market has gone through a lull period post the FY14 results and a couple of book closures for dividends. Banking and Insurance sectors which had majority of their counters release their FY14 results in the last two months have posted regressed price levels in comparison to other post earnings period. NIC Bank, Barclays Bank, Equity Group Holdings and Britam have lost -13.3%, -7.49%,-2.94% and -24.4% respectively year-to-date.
Equity Group Holdings is set for a cash call to their investors in a bid to finance their expansion into other countries in Africa while Britam has been on a rock bottom with court cases taking precedent on the insurer spurring negative investor sentiments. We however portend resumption of positive momentum on banking stocks as they commence releasing their 1Q 2015 results.
Foreign investor participation was strong during the first trading session of the week with foreigner’s accounting for 53.63% of total turnover against 46.37% local participation. Investors were dominant on the demand side, resulting in net inflows worth KES 16.55Mn compared to net inflows worth KES 59.08Mn on Friday.
The highlights of the day’s trading activity are listed below:
Foreign investors accounted for 53.63 of the NSE turnover as compared to 71.65% on Friday.
Investors engaged in accumulative activities recording net inflows worth KES 16.55Mn relative to
net outflows worth KES 59.08Mn on Friday.
Safaricom Limited (NSE: SCOM) was the day’s highest traded stock, recording a turnover of KES
39.77Mn to account for 9.71% of total market activity and 42.67% of foreign activity. Kenya Commercial
Bank Limited (NSE: KCB) followed with a turnover of KES 34.90Mn representing 15.89% of total market
activity and 8.52% of foreign activity.
East African Breweries Limited (NSE: EABL) posted the day’s highest inflows of KES 8.44Mn, whilst Cooperative Bank Limited (NSE: COOP) posted the day’s highest outflows worth KES 3.48Mn.
Performance: The Kenyan Shilling (KES) opened the week’s first trading session on an unstable note as the USDKES exchange rate slipped to fresh three year lows registering at 94.22 (12:30pm GMT) as substantial dollar demand from the energy sector added pressure. Trader’s noted that the KES was unlikely to stabilise unless the CBK intervened in the market by the sale of dollars, as it has in the past week. A general weakening sentiment was observed today as the local currency shed 1.04% and 0.87% against the Sterling Pound (GBP) and the Euro (EUR), respectively whilst also softening against regional peers. The GBP rose to a five-week high against the dollar on Friday, joining a global push against the greenback and as pre-election volatility cooled off.
The Large Cap index pared 0.35% in tandem with market capitalization that depreciated by 0.48% to
KES 2.03Bn. Volume of traded shares was down 64.64% to KES 8.84Mn.
The Mid Cap index contracted by 0.64% reversing previous week’s upswing as market capitalization also dipped 1.55% to KES 268.90Bn. Volume of trades was depleted by a hefty 33.41% to 2.06Mn.
The Small Cap Index lost 0.34% with market capitalisation expanding by 0.77% to KES 39.27Bn.