Kenyan Shilling Sentiments Point towards Easing Liquidity

The Kenyan Shilling (KES) eased in the early trading hours during Thursday’s trading session as sentiments pointed towards easing liquidity in the money market. The USDKES exchange rate weakened by 0.12% to 101.15 (12:30pm GMT) as traders indicated that those who had been sitting on short dollar positions decided to cover them, on expectations that the liquidity crunch would ease as a new Cash Reserve Ratio (CRR) cycle kicks in on Monday. Meanwhile, regionally, the local unit remained strong, posting the strongest gain of 0.73% against the Tanzanian Shilling (TZS).

Sasini Ltd Attractive 5.88% Dividend Yield Props Share Price

Equities market aggravated yesterday’s deleterious performance as mixed trends were observed on the indicators. The benchmark indicator, NSE-20 index pared marginally by 0.08% to close at 4495.52 points while the NASI slumped by 0.80%to close at 153.38 points. Value traded closed on a positive note having gained a hefty 148.19% to pitch at KES 0.612Bn buoyed by a 74% uptick in the volumes traded in today’s session. On the contrary, investors’ wealth contracted by 0.80% to KES 2.148Tn. Mid-cap and small-cap stocks exhibited improved performance as depicted by the 0.66% and 0.51% gains on the indices.

As adverse market conditions and uncertainties of how equity markets in the frontier world will play out prevail, due to the portended Fed rate hike and the China’s Yuan devaluation, Agricultural sector seems to have weathered the storm over the last couple of months, reportedly being one of the best performing sectors. Sasini Ltd (NSE: SASN) underpinned the strong sector performance in Thursdays’ trading posting the highest gain of 13.33% to KES 17.00, followed by Eaagads Ltd (NSE: EGAD) and Kakuzi Ltd (NSE: KUKZ) with a 9.24% and 7.67% surge. Sasini Ltd reported their ten month period results indicating an 894% increase in profitability from both their operating activities and restructuring of non-performing assets. An interim dividend of KES 1.00 was declared which deciphered to an attractive dividend yield of 5.88%. The book closure date is slated for 31st August 2015.

Equity Market Highlights

Safaricom Ltd (NSE: SCOM) was the most traded stock for the day accounting for 21.14% of the total value traded. East African Breweries Ltd (NSE: EABL) clocked in second accounting for 16.86% of the days traded value.

Sasini Ltd (NSE: SASN), capped the gainers list for the day having gained 13.33% to KES 17.00 on account of accumulation activities as investors lock in the stock for the KES 1.00 interim dividend declared. Eaagads Ltd (NSE: EGAD) edged up by 9.24% to KES 32.50.

Eveready E.A. Ltd (NSE: EVRD) topped the losers list declining by 8.22% of its value to KES 3.35. Crown Paints Kenya Ltd (NSE: BERG) depreciated by 5.67% to KES 66.50 buoyed by a thin but significant volume of 300 shares traded.

Foreign Investor Participation

Foreign investor participation was robust during Thursday’s trading session accounting for 70.62% of total turnover against 29.38% local participation. Foreign participants engaged in profit taking activities; resulting in net outflows worth KES 1.43Mn compared to net inflows worth KES 5.04Mn on Wednesday.

Foreign investors accounted for 70.62% of the NSE turnover as compared to 53.67% on Wednesday. Profit taking outweighed accumulation, resulting net outflows worth KES 1.43Mn relative to net inflows worth KES 5.04Mn on Wednesday.

Safaricom Limited (NSE: SCOM) was the day’s highest traded stock, recording a turnover of KES 100.87Mn to account for 16.49% of total market activity and 23.35% of foreign activity, East African Breweries Limited (NSE: EABL) followed with a turnover of KES 97.98Mn representing 16.01% of total market activity and 22.68% of foreign activity.

Equity Holdings Limited (NSE: EQTY) posted the day’s highest inflows worth KES 10.01Mn whilst Cooperative Bank Limited (NSE: COOP) posted the day’s highest outflows worth KES 4.93Mn as investors engaged in profit taking after the bank reported the highest profit in the Tier 1 segment.