Kenyan Shilling makes relative gains against all currencies

Limuru Tea Gains 9.96% Ahead of Share Split

Market activities remained jittery for the better part of Tuesday as investors remained mainly on the supply side. The NSE-20 share index was down; 0.09% to 4776.35 points as the NASI similarly lost 0.66% to 162.27 points. Market capitalization followed suit closing lower than the previous day, down; 0.65% to KES 2.270Bn whereas the equity turnover propped up by 52.52% to KES 0.700Bn. 23 stocks advanced while 12 stocks were on a losing streak representing an A/D ratio of 1.92x.

Limuru Tea Co. Ltd (NSE; LIMT) registered a new high of KES 1,248.00, ahead of its share split on 25th June 2015 on the back of a slim but significant volume of 400 shares exchanging hands. In our earlier earnings update, we mentioned that we portend a better outlook for tea companies this year as a result of improved rainfall patterns which will improve the company’s tea production, noting that the first quarter of the year witnessed a dry spell throughout the country affecting tea bushels and production capacity. Prices have begun to rise slowly at the auction, adding greater prospects towards increased tea prices, translating into greater growth for the country’s tea sector this year.

NSE Equity Market Highlights

Safaricom Ltd (NSE: SCOM) was the most traded stock accounting for 25.58% of the total value traded as Kenya Commercial Bank Ltd (NSE: KCB) trailed behind accounting for 16.62% of the days traded value.

The Limuru Tea Co. Ltd (NSE: LIMT) capped the gainers list shoving up by 9.96% to KES 1,248.00 fuelled by heightened accumulation activities ahead of the proposed share split record date set for 25th June 2015.

Mumias Sugar Ltd (NSE: MSC) followed suit registering a 7.69% gain to KES 2.10 settling in as the day’s second best gainer.

Car and General Ltd (NSE: C&G) was the major laggard of the day depreciating by 9.09% to KES 40.00. Nairobi Securities Exchange Ltd (NSE: NSE) rescinded by 3.57% to KES 20.25.

Foreign Investor Participation

Foreign investor participation remained accelerated during Tuesday’s trading session accounting for 66.98% of total turnover against 33.02% local participation. Investors were dominant on the buying side; resulting in net inflows worth KES 17.75Mn compared to net outflows worth KES 14.38Mn on Monday.

Foreign investors accounted for 66.98% of the NSE turnover as compared to 30.30% on Monday.

Investors engaged in accumulative activities, resulting in net inflows worth KES 17.75Mn relative to net outflows worth KES 14.38Mn on KES 14.38Mn.

Safaricom Limited (NSE: SCOM) was the day’s highest traded stock, recording a turnover of KES 123.50Bn to account for 17.63% of total market activity and 26.32% of foreign activity whilst East African Breweries Limited (NSE: EABL) followed with a turnover of KES 89.82Mn representing 12.82% of total market activity and 19.14% of foreign activity.

Safaricom Limited (NSE: SCOM) posted the day’s highest inflows of KES 45.41Mn, whilst Nation Media Group Limited (NSE: NMG) posted the day’s highest outflows worth KES 51.11Mn.

Shilling Makes Relative Gains Against all Currencies

Performance: The Kenyan Shilling recorded gains against all its major peers during Tuesday’s trading session.

The shilling extended marginal gains against the USD despite end month pressures surging from the energy sector and general importers who usually demand dollars. The USDKES pair gained only by 0.01% to settle at 98.59. Tight shilling liquidity in the market has further hindered any drastic slide of the pair with the Central Bank seeking to mop up KES 10Bn, but only absorbing KES 3.6 Bn. Further gains were registered against the Euro (EUR) as escalated uncertainty mounts on a Greek default due to the stalemate on negotiations with creditors, with the pair gaining 0.77% to 111.06.

On the regional front the Ugandan Shilling (UGX) continued its slide against major currencies, with the Kenya shilling gaining 0.51% against the UGX TO 33.60. End month pressures have come to the fore as banks sought dollars in anticipation of corporate demand.