Real People Becomes the First Micro financier To Issue Bond
The local market dropped for a second consecutive day, dulling investors’ sentiment that the current conditions were improving, as both indexes dropped. The NSE-20 share shed 0.39% to reach 4839.60, as the NASI lost 0.53% to 162.35 points.
Market capitalisation and equity turnover illustrated a similar situation as they dropped 0.53% to KES. 2,273bn and a significant 62.71% t0 0.459bn, respectively, poorly rewarding investors that remained in the market. This was further emphasized as the number of stocks that declined (23) slightly outweighed those that advanced (14); as the A-D indicator worsened from the previous day.
As the week draws to a close word from Capital Markets Authority (CMA) spells good news for micro financier Real People, as it becomes the first to issue and list a bond in Kenya. The non-deposit taking firm aims to raise KES. 5bn over five years; with the first, second and third tranche seeking KES. 2bn, KES. 1.5bn and KES.1.5bn, respectively. Although the Johannesburg listed company is the largest credit-only micro fancier in the country, with a loan book of KES. 2.5bn; it will prove a positive example for following micro lenders struggling with high costs of financing. In unrelated news, Standard Chartered Kenya, has proposed (to its parent company) a share split after shareholders complained that the counter was too illiquid; it currently trades at KES. 302.
Equity Market Highlights
Kenya Commercial Bank Ltd (NSE: KCB) was the most traded stock accounting for 26.23% of the total value traded. Centum Investment Co Ltd (NSE: ICDC) was close second accounting for 24.64% of the days traded value.
Kapchorua Tea Co. Ltd (NSE: KAPC) topped the top gainers list, for a second consecutive day, scaling 9.66% to KES 159.00. Trans-Century Ltd (NSE: TCL) registered a 7.69% gain to KES 14.00 on the back of a thin but significant volume of 600 shares traded, curving in as the day’s second best gainer.
Crown Paints Ltd (NSE: BERG) climbed to spots from the previous day to claim the day’s top loser, declining by 9.68% to KES 70.00. Williamson Tea Kenya Ltd. (NSE: WTK) retreated by 5.19% to KES 347.00; after dropping 11.59% the previous day spelling a bad mid-week for the counter.
Foreign Investor Participation
Foreign investor participation ebbed during Thursday’s trading session accounting for 50.54% of total turnover against 49.46% local participation. Investors remained active on the sell side; resulting in net outflows worth KES 1.08Mn compared to net outflows worth KES 31.53Mn on Wednesday.
Foreign investors accounted for 50.54% of the NSE turnover as compared to 80.20% on Wednesday.
Distributive activities outweighed accumulative activities, resulting in net outflows worth KES 1.08Mn relative to net inflows worth KES 31.53Mn on Thursday.
Kenya Commercial Bank Limited (NSE: KCB) was the day’s highest traded stock, recording a turnover of KES 106.69Bn to account for 45.94% of total market activity and 23.22% of foreign activity whilst Centum Investments Limited (NSE: EQTY) followed with a turnover of KES 20.93Mn representing 4.55% of total market activity and 9.01%% of foreign activity.
Safaricom Limited (NSE: SCOM) posted the day’s highest inflows of KES 15.03Mn, whilst East African Breweries Limited (NSE: EABL) posted the day’s highest outflows worth KES 11.72Mn.
Kenyan Shilling Registers Gains Against All Regional Peers
Performance: The Kenyan Shilling ended Wednesday’s trading session exerting a weakening bias against all its major international peers, with the most significant shedding being registered against the Euro (EUR) by 0.46% to 110.50 as anticipation rises in anticipation for the portended Greek referendum slated for Sunday. Further shedding was exerted on the shilling against the US Dollar (USD) by 0.31% to 99.55 as anticipated US jobs data is set to be announced, coupled with domestic pressures adding further pressure.
On the regional front, the Kenyan shilling registered gains against all its regional peers, with the ZARKES pair gaining by 0.67% to 8.07 following Consumer Confidence Index levels slumping to -15 in Q2, the worst in 14 years, largely due to power blackouts, weaker rand, higher gasoline costs and job cuts. These have stifled consumer demand and their willingness to spend.