Cooperative Market and Currencies Highlights

EQUITIES: The market opened the week on a slightly lower note when compared to its close on Friday.

All the three indices lost ground albeit marginally. The NSE 20 Share index lost 17.12 points to end the day at 3767.20 points while the NASI was down by 0.45% to 147.29 points.

The NSE 25 Share index declined by 10.05 points to settle at 4133.57 points. Market Capitalization dropped to KES 2089 billion from KES 2091 billion previously whilst equity turnover decreased to KES 0.77 billion from KES 33.57 billion on Friday due reduced activity.

Helios Investment Partners’ string of private equity deals on the continent earned its recognition as the 2016 private equity deal maker of the year in Sub Saharan Africa.

Billed as the largest ever fund dedicated to African private equity, the UK firm, co-founded by Africans was feted as Sub Saharan Africa Fund of the Year and Sub-Saharan Africa House of the Year for partaking in several successful acquisitions but also divestments.

Helios recently acquired a 60 per cent stake in Telkom Kenya after France Telecom, currently trading as Orange SA, exited the Kenyan telecom market.

The returns attributed to Helios investments in Africa, in our opinion indicates the proceeds other African-focused funds can yield if they are to increase their investments in African businesses and hence we view this as a vote of confidence on the deals investors can strike in Africa going forward.

Counters expected to show high activity levels going forward are Kapchorua, Williamson Tea Ltd, CFC Holdings and Umeme whose books closure date are set for 30th June 2016 for all.

CURRENCIES:

The Kenya Shilling weakened a touch on Monday against the USD but gained value against the GBP and the Euro. The shilling traded today at a mean of KES 101.26 compared to an average of KES 101.23 against the US dollar on Friday.

We expect the shilling to maintain some slight stability against the dollar but will remain volatile against the Sterling pound following the drawing closer of the Brexit vote which was set for this week on Thursday.

Article by Kingdom Securities Limited