Equities
The week commenced with trading indices indicating it would be another poor performing environment for investors. The NSE-20 Share Index recorded a 0.09% slide to close at 3661.58 whilst the NSE-25 Share Index declined by 0.356% to close at 3964.31 points. The Nairobi All Share Index (NASI) further emphasised the markets position well into the red, declining by 0.46% to close at 140.19 points. Market capitalisation followed suit, slumping by a further 0.47% to close trading at KES 2015.83Bn, while equity turnover rallied by a significant 60.85% to close at KES 0.548Bn. Market breadth illustrated a similar trend, with the number of stocks that advanced -13- being outweighed by the number of stocks that declined -19.
Bamburi Cement Ltd (NSE: BAMB) has joined a growing list of companies that have employed staff cuts to improve their income statement- the list of companies include; Standard Chartered Bank, Equity Bank, Co-op Bank and Uchumi Supermarkets. Bamburi’s payroll soared by around 27% to KES 1.9Bn, compared to the KES 1.5Bn the previous year. The company’s performance was significantly buoyed by the standard gauge railway (SGR), recording a 40 per cent growth in net profit; however the company is forecasted to face declining margins as competitors lower prices. Manufacturers’ are expected to weather adverse market conditions as the Kenyan purchasing managers index drops to its lowest since starting in 2014. With a PMI of 51.5 in June (down by 5%), output barely rose and the rate of expansion in new work reached a record low, while workforce number rose further.
Equity Market Highlights
Equity Group Holding Ltd (NSE: EQTY) was the most actively traded stock today accounting for 25.82% of the total market value traded activity. Safaricom Ltd (NSE:SCOM) also registered high levels of activity, accounting for 22.82% of the total market turnover.
Mumias Sugar Co. Ltd (NSE: MSC) went up by 4.00% to close the day as the second best performer at KES 1.30. E.A. Portland Cement Co. Ltd (NSE: UMME) emerged as the top loser of the day, plunging by 8.96% to close at KES 30.50. Williamson Tea Kenya Ltd (NSE: WTK) similarly lost ground by 7.58% to close at KES 183.00.