New Central Bank of Kenya governor formally appointed

By / Published June 27, 2015 | 1:09 pm

NSE Approves KES 0.38 Dividend Payment

As the week draws to a close, market activities registered mixed movements as investors bowed in to the week’s corporate actions. The NSE-20 share ratcheted up by 0.24% to 4810.36 points, an indication of improved market conditions catalysing the dismal performance witnessed in the month of June. The NASI on the contrary lost 0.10% to 162.51 points.

Investor’s wealth contracted by 0.11% to KES 2.273Bn whereas the equity turnover registered a weighty decline of 62.48% to KES 0.472Bn on the back of volumes traded regressing by 63.84%.

The monetary regulator finally acquired a chief after running for three months with no governor. President Uhuru Kenyatta formally appointed Dr. Patrick Njoroge to become the new Central Bank of Kenya governor. This comes at a time when the country is hopeful that the Monetary Policy Committee will give a favourable policy direction, following the shilling’s drastic weakening against the dollar over the last few days touching an upper limit of KES 99.00 which has pushed investors to move into other markets in order to hedge against further risk ensuing from the currency depreciation.

This has in tandem caused the equities market to react negatively with market activities portraying a slightly bearish trend over the last couple of months. Nairobi Securities Exchange (NSE; NSE) investors will receive their first ever dividend payment, after the exchange self-listed in 2014 through an Initial Public Offering. Shareholders approved a dividend payment of KES 0.38 to be paid on or about 15th September 2015.

Equity Market Highlights

Equity Group Holdings Ltd (NSE: EQTY) was the most traded stock accounting for 40.24% of the total value traded. East African Breweries Ltd (NSE: EABL) lagged behind accounting for 18.18% of the days traded value.

Standard Group Ltd (NSE: SGL) topped the gainers list scaling up; 8.57% to KES 38.00. Total Kenya Ltd (NSE: TOTL) registered a 7.06% gain to KES 22.75 on the back of a thin but significant volume of 700 shares traded, curving in as the day’s second best gainer.

Crown Paints Kenya Ltd (NSE: BERG) was the day’s top loser declining by 10.00% to KES 99.00 on account of persistent distribution activities as investors sell off their credited bonus shares. Mumias Sugar Co. Ltd (NSE: MSC) retreated by 8.16% to KES 2.25.

Foreign Investor Participation

Foreign investor participation held steady during Friday’s trading session accounting for 72.02% of total turnover against 27.98% local participation. Investors were dominant on the sell side; resulting in net outflows worth KES 20.89Mn compared to net outflows worth KES 9.83Mn on Thursday.

Foreign investors accounted for 72.02% of the NSE turnover as compared to 72.03% on Thursday.

Investors engaged in distributive activities, resulting in net outflows worth KES 20.89Mn relative to net inflows worth KES 9.83Mn on Thursday.

Equity Holdings Limited (NSE: EQTY) was the day’s highest traded stock, recording a turnover of KES 172.78Bn to account for 36.57% of total market activity and 50.79% of foreign activity whilst East African Breweries Limited (NSE: EABL) followed with a turnover of KES 81.03Mn representing 17.15% of total market activity and 23.82% of foreign activity.

Umeme Limited (NSE: UMME) posted the day’s highest inflows of KES 3.06Mn, whilst Equity Holdings Limited (NSE: EQTY) posted the day’s highest inflows worth KES 7.37Mn.

Currency

The Kenyan Shilling shed against the US Dollar during Friday’s trading session, marginally receding 0.02% to settle at 98.52. This follows the ascension into office of the new Central Bank of Kenya’s chairman, governor and his deputy. Despite strong data showing increased US personal spending and income, the pair was not constrained as much, which has previously been the case. The shilling registered gains against the Euro (EUR) by 0.12% to 110.26 as Greek debacles ensue. On the regional front the shilling registered gains against the South African rand (ZAR) by 0.41% to 8.11, while also gaining by 0.03% to 33.24 against the Ugandan shilling (UGX).