Kenyan Shilling loses against all major currencies

Williamson Tea up 30% on a Generous Dividend Payout

Equity market activities kicked off on a lethargic note depicted by the poor indicators. Both indices declined marginally in today’s trading session with the NSE-20 share index losing ground by 0.11% to 4759.58 points as the NASI bucked the trend, cutting back 0.09% to 162.75 points. Market capitalization was down; 0.09% to KES 2.276Bn alluding a perfect correlation between the market capitalization and the NASI. Equity turnover plummeted by 1.07% to KES 435.10Mn with both the advancers and decliners closing at par (17/17).

As the bear run persists, now into the second half of the month, things only seem to be getting worse for both the investors and the listed companies. The week began with a new wave of corporate governance issues, ensuing from the dismissal of top officials in Uchumi Supermarket Ltd (NSE: UCHM). The turnout of events did not augur well with investors resulting in a drop in the share price by 6.25% to KES 9.75 despite the steady rise it had recorded in the previous sessions. Williamson Tea Kenya Ltd (NSE: WTK) and Kapchorua Tea Co. Ltd (NSE: KAPC) posted their FY15 results with 73.76% and 9.94% decline in revenues respectively. Notwithstanding the poor performance, both companies will be paying KES 40.00 and KES 5.00 DPS respectively to their shareholders from their reserves. The news was well received by the market spurring a 30.19% increase in Williamson Tea Kenya Ltd to KES 345.00.

NSE Equity Market Highlights

East Africa Breweries Ltd (NSE: EABL) was the most traded stock accounting for 50.70% of the total value traded as Safaricom Ltd (NSE: SCOM) trailed behind accounting for 25.84% of the days traded value.

Williamson Tea Kenya Ltd (NSE: WTK) was the top gainer propping up by a hefty 30.19% to KES 345.00. Investors engaged in accumulative activities following the announcement of a KES 40.00 dividend payout.

Express Kenya Ltd (NSE: XPRS) posted a 7.14% gain to KES 6.00 marking the day’s second best gainer. Standard Group Ltd. (NSE: SGL) was the major laggard of the day shaving 7.59% to KES 33.50 as Total Kenya Ltd (NSE: TOTL) rescinded by 6.52% to KES 21.50 following the lapse of its book closure date last Friday 12th June 2015.

Foreign Investor Participation

Foreign investor participation subdued during Friday’s trading session accounting for 59.18 % of total turnover against 40.82% local participation. Investors returned to the sales front; resulting in net inflows worth KES 149.00Mn compared to net outflows worth KES 12.00Mn on Friday.

Foreign investors accounted for 59.18% of the NSE turnover as compared to 42.04% on Friday.

Foreign investors engaged in accumulative activities, resulting in net outflows worth KES 149.00Mn relative to net inflows worth KES 12.00Mn on Friday

East African Breweries Limited (NSE: EABL) was the day’s highest traded stock, recording a turnover of KES 188.58Mn to account for 43.34% of total market activity and 73.24% of foreign activity whilst Safaricom Limited (NSE: SCOM) followed with a turnover of KES 50.99Mn representing 11.72% of total market activity and 19.80% of foreign activity.

Safaricom Limited (NSE: SCOM) posted the day’s highest inflows of KES 94.02Mn, whilst Kenya Re-
Insurance Corporation Limited (NSE: KNRE) posted the day’s highest outflows worth KES 2.98Mn.

The Kenyan Shilling Loses Against All Of Its Major Currencies

Performance: The Kenyan Shilling shed against the US Dollar (USD) for the first time in 5 days, by 0.01% to 97.24, as the week is estimated to produce more losses; supported by activity that is skewed towards an increase in foreign demand. The shilling also shed against the Sterling Pound (GBP) by 0.38% to 151.24, despite the later dropping points against all but two of its major currencies.

This is due to investors anticipating the Federal Open Market Committee (FOMC) meeting to remain hawkish, resulting in the pound losing the 1.9% it gained against the greenback, the previous week. The shilling also dropped against the Euro (EUR) by 0.19% to 109.35, as the later recorded increased activity in the real- estate market; as most Asian-backed currency investors anticipate the 12 month decline against Asian currencies to be almost over.