Equity Group Posts Day’s Highest Inflows

Equity Group Posts Day’s Highest Inflows

Foreign investor participation held strong during Monday’s trading session accounting for 90.65% of total turnover against 9.35% local participation. Foreign participants were dominant on the accumulative front; resulting in net inflows worth KES 16.63Mn compared to net outflows worth KES 194,778 on Friday.

Foreign investors accounted for 90.65% of the NSE turnover as compared to 91.65% on Friday.

Buy side activities outweighed distribution, resulting in net inflows worth KES 16.63Mn relative to net outflows worth KES 194,778 on Friday.

Kenya Commercial Bank (NSE: KCB) was the day’s highest traded stock, recording a turnover of KES 275.21 Mn to account for 38.16% of total market activity and 42.10% of foreign activity whilst Safaricom Limited (NSE: SCOM) followed with a turnover of KES 189.52 Mn representing 26.28% of total market activity and 28.99% of foreign activity.

Equity Group Holdings Limited (NSE: EQTY) posted the day’s highest inflows worth KES 7.66 Mn whilst Safaricom Limited (NSE: SCOM) posted the day’s highest outflows worth KES 1.52 Mn.

Kenyan Shilling Supported By Tight Liquidity

The Kenyan Shilling (KES) garnered strength during Monday’s trading session anchored by tight liquidity in the money market. The USDKES garnered 0.49% t0 101.77 (12:30pm GMT) as traders held positions ahead of the MPC meeting which is scheduled for this week. Meanwhile, market sentiments point towards further hiking of the CBR in order support the local exchange rate. Regionally, the KES displayed strong performance, reporting gains of 1.30% and 0.66% against the Ugandan Shilling (UGX) and Tanzanian Shilling (TZS, respectively.

Kenya’s Real Estate Sees Added Bank Activity

As the week commenced the local bourse opened the week in similar fashion to how it closed the previous week, in a bearish manner; after the NSE-20 dropped a further 1.13% to 4354.99 and the NSE All Share Index shed 0.91% to close the trading day at 147.04. Equity turnover followed and plummeted 41.68% to KES. 721Mn, as market capitalisation dropped 0.91% to close at KES. 2058Bn.

The market closed the previous week poorly as banks stocks bled a further KES. 36Bn in collective capitalisation, last week, as market conditions worsened. Coupled with Safaricom- that closed the week down 6%- and Express Kenya that also dropped 8.3%, the market did not fare any better this week; as the top-five foreign mutual funds in the local market have witnessed returns dwindle by 11% YTD.

Kenya Commercial Bank’s (NSE: KCB) plans to detach its mortgage lender as a strategy for S&L, the housing department, to leverage on foreign capital and build its own revenue base. The strategy mirrors that of Housing Finance, in which Kenya Building Society contributed 15% of the lenders’ pre-tax profit (a year after activation in 2013); S&L is currently valued at 14% of the bank’s total loan book at KES. 56Bn.

Kenya’s real estate sector has provided handsome returns for property developers and managers; the average mortgage is valued at KES. 7.5Mn. It therefore comes as no surprise that bank’s aggressive strategies- to increase revenue streams- coincides with the introduction of Reits; both KCB and Housing Finance hold Reits trustee licences.

CIC Ltd Climbs to Dominate Top Gainers List

Kenya Commercial Bank Ltd (NSE: KCB) closed as the most traded stock, accounting for 38.80% of the total value traded; as equity news focuses on turning S&L into a subsidiary. Safaricom Ltd. (NSE: SCOM) was second accounting for 27.39% of the days traded value. CIC Ltd. (NSE: CIC) climbed to dominate the top gainers list, scaling 6.43% to KES 7.45. Liberty Kenya Holdings Ltd (NSE: CFCI) registered a 5.75% gain to KES 23.00, curving in as the day’s second best gainer.

Unga Group Ltd. (NSE: UNGA) dropped to claim the day’s top loser, shedding 8.33% to KES 41.25. Sameer Africa Ltd. (NSE: FIRE) followed a close second as it retreated by 8.16% to KES 4.50; as negative sentiment surrounded the stock, following poor financial results.