Transcentury Among Top Gainers Ahead of Expected Board Reshuffle

Equities

The bourse reopened yesterday, on a slightly lower note compared to last week. Mixed trends were observed across the board, as depicted by the market indicators. The NASI plummeted by 0.10% to close at 146.25 while the NSE-25 share index bucked the trend, advancing marginally by 0.08% to close at 4143.08 points. NSE 20 shaved off 0.01% to close at 3817.66 points. Market Capitalization expanded marginally by 0.25% to close at KES 2,075.03 billion whilst equity turnover cut back a hefty 39.35% to close trading at KES 0.4Bn, on account of lower volumes.

Trans-century Ltd was among the top gainers, propped by positive investor sentiments accentuated by the expected reshuffle of its board of directors during the AGM. CFC Stanbic Ltd recorded robust activity in the run up to the book closure for dividend payment. Other counters anticipated to show high activity levels are Crown Berger and Umeme Ltd, with book closure date slated for 15th June 2016 for both counters.

Currency

The Kenyan Shilling commenced the week on a stronger note in comparison to end of last week. The USDKES gained a marginal 0.02% after crossing the 100 level the previous week. The strengthening of the local unit against the USD is mainly attributed to some reduced dollar demand from energy and telco firms and dividend payments to some foreign funds which had created higher demand for the greenback last week. Nonetheless, on a positive note, we expect the local unit to steady as the week progresses, backed by diminishing dollar demand from corporates and expectations that the Central Bank will intervene in the money market if pressure persists.