Equities Market Closes in a Bleak State

Equities

The market closed on a lacklustre note during Wednesday’s trading as most indicators closed in the red. The Nairobi All Share Index dipped by 0.54% to close at 140.88 points while the NSE-20 index declined 0.06% to close at 3851.07 points. The NSE -25 Share Index bucked the trend, advancing marginally by 0.03% to perch at 4,082.86 points. Equity turnover declined significantly by 76.10%, to close at KES 0.303Bn. Market Capitalization rescinded by 0.54% to close at KES 1.983Tn. Market breadth, an unbiased measure of the market performance, indicated that the market conditions had declined further, with the number of stocks that declined, 21, outweighing the number of stocks that advanced, 12. Tier 1 Bank, KCB Group (NSE:KCB) has commenced the use of an Electronic Customer Relationship Management System targeted at improving customer experience and turn-around time. The bank will use the system to manage and analyse customer interactions and data throughout the customer lifecycle, with the aim of driving sales growth as well as boosting service deliver. The system will facilitate greater customer service and in turn increase the number of customers. The tier 1 new business lines that will also escalate customer numbers includes; KCB M-pesa, KCB Insurance Agency, KCB Capital and KCB Sahl Banking. The bank is currently trading at P/E and P/B of 7.06x and 1.47x in comparison to industry’s average of 7.05x and 1.37x (respectively).

Equity Market Highlights

Nation Media Group Ltd (NSE: NMG) was the most actively traded stock today accounting for 19.78% of the total market value traded activity. Safaricom Ltd (NSE: SCOM) closed in second, accounting for 16.82% of the total market turnover.

The Co-operative Bank of Kenya (NSE: COOP) was the top gainer of the day, appreciating by 1.76% at KES 24.50. Bamburi Cement Ltd (NSE: BAMB) registered a 1.70% gain , to close the day at KES 179.00.

Umeme Ltd (NSE: UMME) capped the losers list of the day, plunging by 10.00% to close at KES 18.00. Uchumi Ltd (NSE: UCHM) trailed behind, declining by 4.76% to close the day at KES 7.00.

Article by Genghis Research.