Equities Market Sustains Weak Performance Throughout the Week

Bearish Trend Dominates the Market, 8/11 Sectors Close in the Red

The Kenyan Equities market sustained weak performance throughout the week closing in a lacklustre state. The large caps were the worst performers on Friday recording zero gains in all the stocks traded during the day. NSE-20 Share Index cut back a further 1.05% to close at 4109.60 points whilst the Nairobi All Share Index (NASI) retreated by 1.71% to close at 143.16.

Investors’ wealth similarly contracted by 1.57% to perch at KES 2,013.79 billion whilst equity turnover bucked the trend, resurging by 73.48% to KES 0.74 billion. The A/D ratio deteriorated to 0.30x as the decliners failed to offset the advancers.

In line with global best practise, the NSE board recently approved the launch of a new index dubbed NSE 25 Share index with effect from 02nd October 2015.The new NSE 25 Share Index has been designed and guided by industry best practices, with a view to provide the Exchange with opportunities to develop structured products in the equities and the upcoming derivative market. The lapsed week saw the market close at a -19.62% decline Year-to-Date, despite the market showing some signs of market correction in early July. This leaves us close to entering a bear run if the conditions don’t improve.

Foreign investors have engaged in distributive activities despite the shilling locking in gains during the week.

Equity Market Highlights

Safaricom Ltd (NSE: SCOM) was the most actively traded stock accounting for 27.29% of the total market activity. Equity Group Holdings Ltd (NSE: EQTY) closed in second, accounting for 24.24% of the days traded value. Olympia Capital Holdings Ltd (NSE: OCH) topped the gainers list with a price appreciation of 9.20% to close the day at KES 4.75.

Flame Tree Group Holdings Ltd (NSE: FTGH) scaled up 6.43% closing the day as the second best gainer at KES 7.45. WPP Scangroup Ltd (NSE: SCAN) was the major laggard of the day, paring down by 8.33% to close at KES 27.50. Liberty Kenya Holdings Ltd (NSE: CFCI) lagged behind, sliding by 6.98% to KES 20.00.