BAT Kenya Reason Behind Foreign Inflows Last Month

The local market improved significantly, as the week begun to take shape, having placed distance on what was once thought to be a bear run. The Nairobi All Share Index gained 1.71% to close the week at 144.95, as the NSE-20 garnered 0.64% to 4153.31; rewarding some investors that remained in the market. Market capitalisation continued its upward trend with a 1.71% increase to KES. 2035.82Bn, as equity turnover failed to follow suit and shed a 38.188% increase to KES. 391Mn. Market breadth, an unbiased measure of the market performance, shows that the market remained the same; with the number of stocks that declined, 20, outweighing the number of stocks that advanced, 17.

British American Tobacco Kenya Limited (NSE: BAT) has attracted foreign inflows in August, due to an announced book closure date of the 24th of August; following impressive half-year results. Contradictory to large cap counters that have seen limited price movement, BAT Kenya found itself amongst investor demands, as they searched for dividend yield stocks.

Equity Holdings Ltd. (NSE: EQTY) and BAT Kenya are considered largely responsible for the lion’s share of foreign activity; as five months of net outflows- totalling approx. 739Bn- have contributed to the main index falling to a two-and-a-half year low. The tobacco company shed 14.2% since the week beginning to record a price of KES. 750 at the close of trading, after profit taking activities ceased. A further drop in price may see regained interest, as investors search for stocks whose prices have dropped to a discount.

Equity Market Highlights

CFC Stanbic of Kenya Holdings Ltd (NSE: CFC) climbed to claim the top spot and close as the most traded stock, accounting for 24.43% of the total value traded. Centum Investment Co Ltd. (NSE: ICDC) remained
second, accounting for 22.34% of the days traded value. British American Tobacco Kenya Ltd. (NSEBAT) climbed to dominate the top gainers list, scaling 8.54% to KES 750.00. B.O.C Kenya Ltd (NSE: BOCK) registered a 6.48% gain to KES 125.00, curving in as the day’s second best gainer.

Kakuzi Ltd. (NSE: KUKZ) dropped to claim the day’s top loser, shedding 9.36% to KES 310.00. Sasini Ltd. (NSE: SASN) followed a close second as it retreated by 7.88% to KES 15.20.