Market Closes the Week on Mixed Trends

Equities

The Kenyan equities market closed on varied trends as portended by the market indicators. The NSE- 20 index lost ground by 2.01% to close at 3524.59 points from 3596.98 points. The NSE-25 share index similarly edged down by 1.21% to close at 3839.95 points whilst the NSE All Share index appreciated by 0.16% to close at 138.52 points. Shareholders wealth surged by 0.22% from KES 1.989Tn to KES 1.993Tn. Equity turnover however followed suit, advancing by 19.58% to close at KES 3.77Bn.

Kenya Airways Ltd (NSE: KQ) tapered its pre-tax loss by 12.2% to KES26.1 billion in the year to end-March 2016. This was attributed to a firmer dollar against the shilling during the year, higher financing costs and fuel hedging losses which offset the impact of higher revenue. The US dollar strengthened significantly against the Kenya shilling (12.9%) and other currencies resulting in an increase in foreign exchange loss of KES 9.7 billion.

Read: Kenya Airways Optimistic for Growth Amid Uncertainty about 2017 General Elections

The group’s cost of borrowing increased in the financial year incurring an additional KES 2.3 billion in interest expense. In addition, the movement in international oil prices during the year unfavourably impacted the Group’s fuel hedges resulting into an additional KES 5,093 million in realised fuel hedges losses. Gross profit rose 42% as the operating loss reduced by 75 % from KES 16.3 billion in 2015 to KES 4.1 billion. Nonetheless, the airline incurred a loss before tax of KES 26.1 billion compared to KES 29.7 billion in the prior year, an improvement by Kshs 3.6 billion (12%).