Uchumi Supermarkets has closed down two of its non-performing branches in Uganda, following the closure of the Syokimau and Maua branches in Kenya. The move is part of a shake-up process aimed at reviving the retailer’s regional performance after the entry of CEO Julius Kipngetich. As of June this year, Uchumi had 40 branches with 4,500 employees spread across East Africa, with a majority of them in Kenya, Uganda and Tanzania.
NSE unveils new index for top 25 listed companies
The Nairobi Securities Exchange has launched a new index comprising 25 companies, with financial sector firms making up more than half the list. The NSE said the new index is expected to facilitate smooth operation of upcoming market for derivatives, which are instruments used in hedging against risk present in underlying assets. The launch of the index is also set to deepen the market in terms of providing opportunities to form Exchange Traded Funds (ETFs), which focus on specific group of stocks such as those in an index.
I&M Bank suspends online card payments
I&M Bank has discontinued debit and credit card-backed ecommerce transactions, citing a massive increase in online fraud. The bank said in a notice to its customers that it was stopping use of debit and credit cards for online transactions to safeguard its customers’ fund. They noted an increase in e-commerce or online transaction frauds perpetrated through card payments.
BAT opens KES152m warehouse with eye on exports growth
Cigarette maker British American Tobacco (BAT) has opened a KES152 million warehouse expected to increase its storage capacity for exports. Managing director Keith Gretton said the Cut Rag Tobacco Store would create additional space to increase storage capacity by 300 million kilogrammes, an equivalent of 280 40-foot containers of semi-processed tobacco. BAT exports 70 percent of their manufactured products to 16 foreign countries within East and Central Africa region.
KQ has drawn down half of its KES20bn Afrexim bank loan
Loss-making Kenya Airways has drawn down half of a KES20 billion (USD200 million) bridging loan from Afrexim bank and expects the next tranche in two weeks, its chief executive said on Friday. Managing Director Mbuvi Ngunze told reporters the financing will allow the carrier to get on a firmer financial footing.
Kenyan Stock Market
The NSE 20 and NASI index went down 2.24 percent and 0.90 percent respectively w/w to close at 4,017.34 and 141.87
Turnover, total volumes traded and total market capitalization stood at 2,949.00mn, 90.64 and KES 1,995.52 respectively at the end of the week.
EAC Markets
Uganda: The USE ALSI declined 0.53 percent w/w to close at 1,900.03 while USE LSI went up 0.92 percent w/w to close at 359.10
Rwanda: The RSE ALSI and the RSE RSI declined 1.03 percent and 6.08 percent w/w respectively to close at 134.06 and 174.64.
Tanzania: The DSE TSI and DSE DSEI index shed off 0.67 percent and 3.13 percent w/w to close at 4,592.45 and 2,409.71
Global markets
The S&P 500 slipped less than 0.1 percent to 2,013.05. The gauge is up 3.2 percent for the week, which would be the most since December. The Dow Jones Industrial Average added 8.99 points, or 0.1 percent, to 17,059.74. The Nasdaq Composite Index gained 0.1 percent.
The Stoxx Europe 600 Index climbed 0.8 percent to 364.54. The gauge is rising for a sixth day, its longest rally since July, after minutes late yesterday from the Federal Reserve’s September meeting showed officials put off a rate increase citing risks to the U.S. economy and inflation from China.
The MSCI Asia Pacific Index climbed 1.7 percent to 133.39 poised for a 5.6 percent rally this week. Asian stocks rose, with the regional benchmark index heading for its biggest weekly advance since December 2011.