Kenya Trims Electricity Imports from Uganda

Equities market sustained the losing streak witnessed during yesterday’s trading, with all indicators pointing south. The Nairobi All Share Index depreciated by 1.30% to settle at 137.02 points, attributable to share value erosion on various counters. The NSE 20 Share Index lost 0.96% to close at 3759.94 points while the NSE 25 Share Index lost 0.86% to close at 3911.82 points.

Market capitalization contracted further by 1.31% to KES 1.93 trillion from KES 1.95 trillion whereas the equity turnover rescinded by a hefty 40.23% to close at KES 0.500 billion, on the back of a decline in volumes traded. Market conditions posted a slight improvement as depicted by the A/D ratio, which strengthened to 0.67x against yesterday’s close of 1.56x.

Kenya cut its electricity imports from Uganda by more than half after injecting 280Mw of geothermal power into the national grid between July and December 2015. The entry of green sources of energy is expected to provide adequate power to counter the undersupply while also addressing the issue of fuel costs passed on to consumers. Commercial and industrial firms which take for instance a million units will have a reduction of 26%, whilst those that consume domestically will have a reduction of 24% on the fuel cost charges. The resultant benefit that was to be achieved from the el-nino rains, will not be felt by the consumers thus we still expect an overreliance on geothermal power.

Equity Market Highlights

Equity Group Holdings Ltd (NSE: EQTY) was the most actively traded stock today accounting for 34.30% of the total market value traded activity. Kenya Commercial Bank Ltd (NSE: KCB) came in second, accounting for 24.50% of total market turnover. TPS Eastern Africa Ltd (NSE: TPSE) capped the gainers chart, climbing up by 6.52% to close at KES 24.50. Atlas Development & Support Services Ltd (NSE: ADSS) lagged behind, closing as the day’s second biggest gainer, with a 5.56% rise to KES 1.90.

Williamson Tea Kenya Ltd (NSE: WTK) continued its downward spiral, declining by 9.44% to close at KES 163.00. E.A. Cables Ltd (NSE: CABL) lost ground by 8.08% to close at KES 9.10.