Upbeat Month for Investors Spelt by Gains on Indicators

The bourse reopened on a positive trend with all indices in the green territory. The NSE-20 share index advanced marginally by 0.52% to close at 3892.84 points while the NSE All Share Index followed suit, garnering 0.33% to perch at 140.64 points.

The NSE 25 Share index has also remained on the gaining front, climbing up by 0.37% to 4090.82 points. Market capitalisation equally gained 0.33% to close at KES 1,978.29 points; a clear indication of improving market conditions whilst equity turnover bucked the trend, losing 44.82% to close at KES 0.270 billion. The A/D ratio strengthened to 1.38x from 1.19x.

Decline of fortunes at Nairobi Securities Exchange has hit small investors harder, especially those who bought stocks such as Kenya Airways and Trans Century Ltd years ago when the stocks were listing or they had just listed. The bourse has experienced turbulence for close to a year now leading to a loss in value of 14.45% on the shareholders’ wealth. The Nairobi All share index has similarly lost 14.13% year–to-date spelling a very austere state of the market this year. The month of November however began on a high note with gains recorded on the market capitalisation in four out of the six trading sessions carried out. A market correction is highly probable in the equities market as interest rates on the fixed income instruments come down, thereby pushing investors back to the equities segment.

Equity Market Highlights

East African Breweries Ltd (NSE: EABL) was the most actively traded stock today accounting for 31.64 % of the total market value traded activity. Safaricom Ltd (NSE: SCOM) closed in second place, accounting for 16.38% of the days traded value.

Bamburi Cement Ltd (NSE: BAMB) capped the gainers chart, scaling up 5.45% to close the day at KES 174.00 on account of only 1,800 shares traded thus benefitting from a demand-supply premium. Eaagads Ltd (NSE: EGAD) was up; 4.85%, to close at KES 27.00. Uchumi Supermarket Ltd (NSE: UCHM) was the top loser of the day, tumbling by 7.02 % to close at KES 7.95. Sasini Ltd (NSE: SASN) lagged behind, edging down by 3.10% to close at KES 15.65.