Storm in Britam amid Equity recovery as CBK sells Dollars to support KES

The bourse contracted in today’s session with the NSE-20 Share index shaving off 0.55% to 5073.86 points as the NASI retreated 0.41% to 172.96 points.

Market capitalization diminished by 0.41% to KES 2.42Tn as equity turnover gained 59.02% to KES 676.10Mn. Kenya Commercial Bank (NSE: KCB) & Equity Group Holdings Ltd (NSE: EQTY) were the most active counters accounting for 53.09% of the day’s traded value.

British American Investments Ltd (NSE: BRIT) depreciated a further 9.18% to KES 22.25 as an inquiry regarding its executive director charges on bank fraud in Mauritius persists. The probe has brought about investor skepticism reflecting the weight attached to the company’s corporate governance. Despite the sturdy outlook of the insurer, this ruction could spawn a further price dive particularly should the accused be held culpable. On the other hand, investor activity on Equity Group Holdings (NSE: EQTY) is imparting a recovery from last week’s downfall of KES 46.00 as the counter soared 1.58% to close at
KES 48.25.

Foreign investor participation remained steady during Tuesday’s trading session with foreigner’s accounting for 59.30% of total turnover against 40.70% local participation. We observed a reversed trend in the market as investors focused on the sell side, resulting in net outflows worth KES 20.73Mn compared to net inflows worth KES 48.76Mn on Monday.

The highlights of the day’s trading activity are listed below:
Foreign investors accounted for 59.30% of the NSE turnover as compared to 51.72% on Monday.

Investors engaged in distributive activities recording net outflows worth KES 20.73Mn relative to net inflows worth KES 48.76Mn on Monday.

Kenya Commercial Bank Limited (NSE: KCB) was the day’s highest traded stock, recording a turnover of KES 193.50Mn to account for 28.62% of total market activity and 48.26% of foreign activity. Equity Holdings Limited (NSE: EQTY) followed with a turnover of KES 71.45Mn representing 10.57% of total market activity and 17.82% of foreign activity.

Kenya Commercial Bank Limited (NSE: KCB) posted the day’s highest inflows of KES 29.24Mn, whilst Equity Holdings Limited (NSE: EQTY) posted the day’s highest outflows worth KES 35.47Mn.

Currency

Performance: The Kenyan Shilling (KES) hit a low of 93.80 against the US Dollar in early hours of trading on Tuesday; this prompted the Central Bank of Kenya to sell Dollars in the money market to prevent further depreciation. The sale provided marginal support as the USDKES still remained at three year lows. Meanwhile, the local currency performed better against the Sterling Pound (GBP) and Euro (EUR), posting gains of 0.24% and 0.35%, respectively. The EUR weakened across the board for the second consecutive day as investor concerns over Greece’s future grew, with the European Central Bank said to be studying ways to rein in emergency financing to the nation’s lenders. On the regional forefront, the local unit continued to rally against the Tanzanian Shilling (TZS) and South African Rand (ZAR), gaining 0.74% and 0.47%, respectively but weakened against the Ugandan Shilling, shedding 0.16%.

Large-Cap Index

The Large Cap index shed 0.88% in tandem with market capitalization that dropped 0.48% to KES2.04Bn. Volume of traded shares went up 50.01% to KES 16.24Mn.

• Equity Group Holdings Ltd (NSE: EQTY) shored up 1.58% to KES 48.25 making it the top gainer in the
  large cap segment.

• British American Investments Ltd (NSE: BRIT) depreciated a further 9.18% to KES 22.25.

Mid-Cap Index

The Mid Cap index dipped 0.26% as market capitalization declined by 0.23% to KES 266.77Bn.Volume of trades accelerated by 141.72% to 2.15Mn.

• Umeme Ltd (NSE: UMME) gained 8.88% to KES 19.00.

• Trans-Century Ltd (NSE: TCL) retreated by 5.11% to KES 16.70.

Small-Cap Index

The Small Cap Index expanded by 0.36% as market capitalisation rose by 0.47% to KES 39.56Bn.

• Olympia Capital Holdings Ltd (NSE: OCH) was up 2.73% to KES 5.65.

• Eaagads Ltd (NSE: EGAD) declined by 2.78% to a Vwap of KES 35.00.