More Profit Warnings Sink into 2016

The bourse reopened after the New Year holiday on a tepid note, advancing the bear run that was witnessed till the end of 2015. The NSE 20 Share Index slid by 0.84% to close at 4007 points, contrary to the rising trend that was experienced last week. The NSE All Share Index was on a similar trail, losing ground by 0.14% to close at 145.50 points whilst the NSE 25- Share Index lost 0.48% to close at 4174.50 points. Market capitalization and equity turnover were on a downturn, with the former edging down by 0.14% to close at KES 2.047Tn, while the latter contracted by a marginal 11.01% to close at KES 168.95Mn.

The number of stocks that declined, 24, outweighed the number of stocks that advanced, 14, resulting in deteriorated market conditions compared to the previous years’ close.

As at the end of the year 2015, only 10 out of the 61 listed counters posted gains, leaving the rest of the stocks to the mercies of the persisted bear run that began in March 2015. The NASI was down 6.62% Y-t-D, while the NSE 20 share index declined by 20.97% Y-t-D. Banking sector posted the largest capitalisation decline of KES 216Bn, followed by manufacturing (KSE 51Bn) and Insurance sector (KES 43Bn). The market downturn was orchestrated by among other things: Company’s poor performance, re-introduction of capital gains tax and the shillings weakness. Home Afrika Ltd (NSE: HAFR) today issued a profit warning, stating that net earnings for the period lapsed will be lower than the previous years’ net earnings.

Equity Market Highlights

Kenya Commercial Bank Ltd (NSE: KCB) was the day’s highest traded stock, recording l a turnover of KES 63.61Mn to contribute 37.65% of total market activity. Equity Group Holdings Ltd (NSE: EQTY) followed with a turnover of KES 48.39Mn representing 28.64% of total market turnover.

Atlas Development & Support Services Ltd (NSE: ADSS) crowned the gainers list, surging by 9.52% to close at KES 2.30. Britam Holdings Ltd (NSE: BRIT) posted a 5.00% gain to close the day at KES 13.65. WPP Scangroup Ltd (NSE: SCAN) emerged as the top loser of the day, slumping by 8.33% to close at KES 27.50, on account of a thin volume of 100 shares traded. B.O.C. Kenya Ltd (NSE: BOC) lagged behind, dipping by 7.84% to close at KES 94.00.