NSE Listed Companies Make Drastic Changes

NSE Listed Companies Make Drastic Changes

The NSE and NASI illustrated an optimistic turnaround start as both indices gained, for a second consecutive day. The NSE-20 share rallied 1.42% to reach 4906.07, as the NASI garnered a further 0.82% to 164.41 points. Market Capitalisation and Equity Turnover followed suit as they garnered 0.91% to KES.2,301bn and a significant 1130.02% t0 8.92bn, respectively.

The Equity Turnover reached record highs as Helios EB Investors sold off 2.44% of its shares, to the Uganda National Social Security Fund (NSSF), coupled with top performing stocks making significant gains. The number of stocks that declined (20) slightly outweighed those that advanced (17); as the A-D indicator worsened from the previous day.

In the equity news, major NSE players have made strategic moves to remain effecient in current market conditions. Investment company Olympia Capital dealt a heavy blow to shareholders after announcing the closure of Dunlop Industries and Tiespro Trading, which together owned Olympia KES. 112.7 million.

The two loss-making subsidiaries, are also accompanied by Mather and Platt Kenya Limited, a fire and mechanical engineering firm that recorded losses of KES. 8.2 Million (for the full year to February last year). Coupling such actions, the listed company also plans to sell its Nanyuki Road-based property and re-develop its property in Nariobi’s Industrial Area at the cost of KES. 500 million.

Mumias Sugar, another listed company, hired eight new managers that will assume office tomorrow on July 1, after the audit report from an external firm revealed that problems emanated from poor management; resulting in a KES. 1 billion bailout, received last week.

Equity Market Highlights

Equity Group Holdings Ltd (NSE: EQTY) was the most traded stock accounting for a significant 83.37% the total value traded. British American Tobacco Kenya Ltd (NSE: BAT) was second accounting for 7.49% of the days traded value.

CFC Stanbic of Kenya Holdings Ltd (NSE: CFC) topped the top gainers list scaling 6.54% to KES 114.00; a turnaround after dropping 14% in the last six months.

B.O.C Kenya Ltd (NSE: BOC) registered a 6.11% gain to KES 139.00 on the back of a thin but significant volume of 1,600 shares traded, curving in as the day’s second best gainer.

Crown Paints Kenya Ltd (NSE: BERG)remained the day’s top loser, for a third consecutive day, declining by 10.00% to KES 81.00; as investors sell off their credited bonus shares. National Bank of Kenya Ltd (NSE: NBK) retreated by 6.99% to KES 19.30.

Foreign Investor Participation

Foreign investor participation surged during Tuesday’s trading session accounting for 89.47% of total turnover against 10.53% local participation. Investors were heavily active on the sell side; resulting in net outflows worth KES 318.07Mn compared to net outflows worth KES 43.34Mn on Monday.

Foreign investors accounted for 89.47% of the NSE turnover as compared to 75.40% on Monday.

Investors engaged in distributive activities, resulting in net outflows worth KES 318.07Mn relative to net inflows worth KES 43.34Mn on Monday.

Equity Holdings Limited (NSE: EQTY) was the day’s highest traded stock, recording a turnover of KES 7.42Bn to account for 83.09% of total market activity and 92.88% of foreign activity whilst British American Tobacco (NSE: BAT) followed with a turnover of KES 259.11Mn representing 2.90% of total market activity and 3.24% of foreign activity.

Equity Holdings Limited (NSE: EQTY) posted the day’s highest inflows of KES 10.64Mn, whilst British American Tobacco (NSE: BAT) posted the day’s highest outflows worth KES 259.11Mn.

KES Displays Weakening Bias

Performance: The Kenyan Shilling traded with a weakening bias during Tuesday’s trading session as it recorded losses marginal losses against most international peers. The softening of the KES may have been attributed to weak data, following the release of the Standard Chartered Business Sentiment Indicator (BSI) which fell to 58.6 in June from 66.9 in May; declining 12.4 per cent m/m. The strongest loss for the day was posted against the Euro (EUR) as the EURKES exchange rate slipped by 0.62% to 155.10 (12:30pm GMT). Meanwhile, the USDKES exchange rate held relatively steady standing at 98.64 (12:30pm GMT) gaining support from dollar sales last week.