Equities
As the week took shape, market activities resumed normalcy as indicated by the value of transactions. The NSE-20 Share Index recouped yesterday’s losses, gaining 0.56% to close at 3884.01 points whilst the NSE-25 Share Index similarly edged upwards, appreciating by a marginal 0.01% to close at 4087.23 points. Nairobi All Share Index (NASI) was down; 0.16% to close at 141.80 points. Market capitalization contracted by 0.17% to close at the KES 1.997 trillion. Equity turnover, however, bucked the trend, surging by 79.51% to KES 456.89Mn, on account of increased volumes. Market conditions improved significantly, as indicated by the advance-decline ratio which stood at 1.67x, against yesterday’s close of 0.65x.
Tier 1 lender, Barclays Bank of Kenya (NSE: BBK) has been under scrutiny by investors, over allegations of Barclays PLC exiting African operations. However, during the bank’s (Barclay’s PLC) FY15 results announcement today, they indicated they will be selling down their 62.3% interest in their African business (Barclays Africa Group Ltd owns 68.5% BBK’s shareholding). This will take place, over the coming two to three years, till they reach a level which will permit them to deconsolidate themselves in Africa from an accounting and regulatory perspective. This sell off is expected to have some ripple effects on the Kenyan unit, as investors engage in panic selling.
Equity Market Highlights
Kenya Commercial Bank Ltd (NSE: KCB) was the most actively traded stock today accounting for 17.09% of the total market value traded activity. Safaricom Ltd (NSE: KCB) also registered high levels of activity, accounting for 15.26% of the total market turnover.
Carbacid Investments Ltd (NSE: CARB) capped the gainers chart, appreciating by 7.58% to close at KES 14.90. Sasini Ltd (NSE: SASN) came in second, gaining 5.46%, to close the day at KES 19.30.
Unga Group Ltd (NSE: UNGA) emerged as the top loser ofthe day, retreating by 9.09% to close at KES 35.00. The company posted a 21% decline in profits after taxes for their HY16 results. Kakuzi Ltd (NSE: KUKZ) lost yesterday’s gains, losing ground by 8.51% to close at KES 301.00 on account of only 300 shares traded today.
Article by Genghis Research.