M-Akiba Bond Set to be Launched by End of March

The government is targeting to float the KES 5 billion M-Akiba bond by end of March 2016. The M-Akiba bond, which is only traded on mobile phone platforms was expected in October 2015 but wasn’t effected due to the volatile interest rate that prevailed during that period. Individual investors can bid with as little as KES 3,000 and a maximum of KES 140,000 for the income tax free bond. Interest for the bond will be paid semi-annually through the mobile phone. The KES 5 Billion bond is very attractive and we anticipate spurred investors’ appetite for fixed income instruments from Q2 2016.

Market commenced on an austere note on Monday’s trading as portrayed by the market indicators which all closed in the red. The NSE 20 Share Index slid by 1.83% to close at 3929.92 points. The NSE All Share Index was on a similar trend, declining by 1.71% to settle at 144.23 points whilst the NSE 25- Share Index plummeted by 2.20% to close at 4117.70 points. Market capitalization declined by 1.71% to KES 2.029 trillion whilst the equity turnover posted a 2.92% gain to close at KES 0.351 billion. The advancers (17) failed to outweigh the decliners (21) resulting in an A/D ratio of 0.81x.

Equity Market Highlights

Safaricom Ltd (NSE: SCOM) was the most actively traded stock today accounting for 42.62% of the total market value traded activity. Kenya Commercial Bank Ltd (NSE: KCB) followed with a turnover of KES 105.41Mn, accounting for 29.96% of total market turnover.

Longhorn Publishers Ltd (NSE: LKL) topped the gainers chart, appreciating by 5.77% to close at KES 5.50. Crown Paints Kenya Ltd (NSE: BERG) registered a 4.55% rise, to close the day as the second best gainer at KES 57.50.

Williamson Tea Kenya Ltd (NSE: WTK) led the losers pack, plunging by 18.88% to close at KES 318.00. Jubilee Holdings Ltd (NSE: JUB) lagged behind, declining by 5.71% to close at KES 462.00.