MPESA homecoming, KES relatively flat after sharp decline as Eveready diversifies…

The NSE 20-share index shed 0.92% to 5078.74 points while the NASI gained 0.29% to 171.57 points.

Market capitalization soared 0.29% to KES 2.40Tn as equity turnover surged by 47.21% to KES 590.60Mn. Kenya Commercial Bank (NSE: KCB) & Equity Group Holdings Ltd (NSE: EQTY) were the most active counters accounting for 64.06% of the day’s traded value.

Eveready East Africa Ltd (NSE: EVRD) scaled up 2.60% to KES 3.95 as the firm announced a partnership with Orbit Chemicals Ltd. geared to penetrating into the personal care products market. The former battery manufacturer has been aggressively seeking ways to diversify its business among them being the conversion of the closed off Nakuru plant into a commercial or residential centre. With proper strategy and implementation these advancements could restore the firm to profitability.

In addition, Safaricom Ltd (NSE:SCOM) garnered 2.76% to KES 16.75, as the localization of MPESA servers was concluded promising efficiency by enhancing execution speeds of transactions. This move is anticipated to uplift Investors confidence in the telecoms prospective growth.
Foreign investor participation accelerated during Thursday’s trading session with foreigner’s accounting for 75.55% of total turnover against 24.45% local participation. Investors remained dominant on the demand side, resulting in net outflows worth KES 41.90Mn compared to net inflows worth KES 4.31Mn on Wednesday.

The highlights of the day’s trading activity are listed below:
Foreign investors accounted for 75.55% of the NSE turnover as compared to 45.30% on Wednesday.
Investors took to profit taking activities as they were dominant on the sell side; recording net outflows worth KES 4.31Mn relative to net inflows worth KES 41.90Mn on Wednesday.

Kenya Commercial Bank Limited (NSE: KCB) was the day’s highest traded stock, recording a turnover of KES 262.42Mn to account for 44.43% of total market activity and 58.81% of foreignactivity. Equity Holdings Limited (NSE: EQTY) followed with a turnover of KES 92.60Mn representing 15.68% of total market activity and 20.75% of foreign activity.

Barclays Bank Limited (NSE: BBK) posted the day’s highest inflows of KES 4.74Mn, whilst Athi River Mining Limited (NSE: ARM) posted the day’s highest outflows worth KES 28.8Mn. The total index garnered 0.24% as six segments advanced and six segments declined.

The Telecommunications & Technology segment took pole position up 2.76% as its only constituent Safaricom Ltd (NSE: SCOM) went up 2.76% to a Vwap of KES 16.75.

The Investment segment was the worst performer contracting by 0.77% as Olympia Capital Holdings Ltd
(NSE: OCH) shed 2.61% to a Vwap of KES 5.60.

Currency:
Performance: The Kenyan Shilling (KES) held relatively steady at three year lows on Thursday at 93.50 (12:30pm GMT) against the US Dollar. Nonetheless, we may observe more weakening of the USDKES exchange rate over the next few days as companies gear up to buy dollars to make dividend payments to their foreign shareholders. The largest loss during the trading session was reported against the Euro, where the local unit shed 0.61% as horticulture exports to the Euro zone floundered. Meanwhile, the KES also traded on a weaker note against regional pairs reporting a 0.52% decline. The ZAR firmed to the dollar compared with its closing level on Wednesday as the greenback fell on weak US economic data.

Large-Cap Index

• The Large Cap retreated a further 0.35% as market capitalization gained 0.46% to KES2.02Bn in tandem
  with Volume of traded shares that increased by 52.14% to 13.31Mn.
• Safaricom Ltd (NSE: SCOM) shored up 2.76% to close at KES 16.75 making it the top gainer in the large cap segment.
• British American Tobacco Ltd (NSE: BAT) dived 6.11% to KES 676.00 reversing previous days performance.

Mid-Cap Index

• The Mid Cap index shaved off 0.95% as market capitalization dipped by 1.05% to KES 264.23Bn.Volume of trades dropped 9.4% to 2.22Mn.

• Total Kenya Ltd (NSE: TOTL) gained 1.06% to KES 23.75 making it the top gainer in the mid cap
  segment.

• Kenya Airways Ltd (NSE: KQ) dropped 4.70% to KES 7.10.

Small-Cap Index

• The Small Cap Index shot up 1.17% as market capitalisation rose by 1.16% to KES 38.94Bn.

• Standard Group Ltd (NSE: SGL) was up 6.43% to KES 37.25 with 200 shares traded on the counter.

• Olympia Capital Holdings Ltd (NSE: OCH) declined by 2.61% to a Vwap of KES 5.60.