Kenyan Markets on the Watch as FOMC Meeting Commences

Marked gains were observed across the market with five sectors registering gains, four sectors posting declines and two sectors remaining unchanged. The NSE-20 share index gained 0.38% to close at 4250.60 points while the NASI similarly propped 1.06% to close at 149.14 points. The value of transactions was on an up streak, garnering 52.15% to close at KES 0.606Bn, bolstered by heavy trading activities on banking and telecom stocks whilst the investors’ wealth surged by 1.06% to KES 2.095Tn. Kenyan Market conditions had slightly worsened as depicted by the advancers/decliners ratio at 0.81x against 0.95x as the decliners outweighed the advancers.

As the world lies on the edge of a possible Fed rate hike, Kenyan market activities have sustained positive performance. The market has actually posted amplified trading with volumes as high as 24.99Mn, half of it coming from foreign investors. This is despite expectations that investors would portray a cautious attitude in their trading this week. The possibility that the Fed reserve could raise interest rates for the first time in over nine years this week, has gained traction from the investing world. This could see Kenya and other regional currencies in emerging markets wobbling due to improved global economy and a strengthening dollar. We opine that foreign activities may remain slightly subdued in the next couple of days as the Federal Open Market Committee sits to deliberate on the monetary stance for United States and as investors keep a watch on the proceedings from the meetings which would definitely impact on their portfolios.

Equity Market Highlights

Safaricom Ltd (NSE: SCOM) was the most active stock during Tuesday’s trading accounting for 28.08% of the total value traded. Kenya Commercial Bank Ltd (NSE: KCB) closed second accounting for 25.33% of the days traded value.

National Bank of Kenya Ltd (NSE: NBK) capped the gainers list, propping 6.47% to close the day at KES 18.10. Uchumi Supermarkets Ltd (NSE: UCHM) was spurred by the corporate news featured today concerning the clearing of KES 500Mn gaining 6.15% to close the day, as the second best gainer at KES 9.50.

Kakuzi Ltd (NSE: KUKZ) reversed yesterday’s momentum, leading the losers pack. It was down; 10.00% to KES 297.00. Flame Tree Group Holdings Ltd (NSE: FTGH) slumped by 9.09% to KES 7.00 trailing behind as the second biggest loser of the day.