Market Indicators End Day in Mixed Territory

On Monday’s trading session, the bourse was characterized by mixed trends on the indices and improved trading levels as depicted by the value of transactions. The NSE-20 Share Index lost ground by 0.04% to close at 3962.95 points whilst the NSE-25 Share Index, advanced marginally by 0.03% to perch at 4207.11 points. The Nairobi All Share Index (NASI) closed in the green, increasing by 0.02% to settle at 145.64 points. Equity turnover and market capitalization remained on the green, as the former increased significantly by 73.12% to close at KES 0.459 billion and the latter garnered 0.02% to close at KES 2,052.77 billion.

Market breadth showed an improvement as the number of stocks that advanced -21 outweighed the number of stocks that declined -18.

Kenyan banks are pushing for addition of all creditors in credit information sharing (CIC), a move aimed at bringing down the cost of loans. The current law limits the scope of information shared with banks, microfinance institutions and Saccos.

Read: The State of Banking in Kenya: A Story of Numbers

Previous Central Bank of Kenya guidelines required banks to provide information relating to loan defaults to credit reference bureaus but have since allowed sharing of positive information. Kenya Bankers Association (KBA) indicated that a review of the law would help provide sufficient information which could remove the need for collateral.

Equity Market Highlights

East African Breweries Ltd (NSE: EABL) was the most actively traded stock today accounting for 30.94% of the total market value traded activity. Safaricom Ltd (NSE: SCOM) also registered high levels of activity, accounting for 27.77% of the total market turnover.

Transcentury Ltd (NSE: TCL) topped the gainers list, appreciating by 9.38% to close the day at KES 5.25. Eveready E.A (NSE: EVRD) went up by 4.17% to close the day as the second best performer at KES 2.50.

Kenya Airways Ltd (NSE: KQ) emerged as the top loser of the day, plunging by 8.05% to close at KES 4.00. Flame Tree Group Ltd (NSE: FTGH) similarly lost 5.63% to close at KES 7.55.

Article by Genghis Research.