Equity Markets Close in a Somber Mood

During Tuesday’s trading session, the trading indices closed in an austere note compared to Monday’s trading.

The NSE- 20 Share Index recorded a 0.52 percent slide to close at 3241.92 whilst the NSE-25 Share Index declined by 0.50 percent to close at 3630.58 points. The Nairobi All Share Index (NASI) followed suit, plummeting by 0.17 percent to close at 131.62 points.

Market capitalization followed suit, contracting by 4.74 percent to close trading at 1,906.66 billion shillings while equity turnover slumped further by a significant 36.98 percent to close at 0.637 billion shillings.

Market breadth illustrated a similar trend, with the number of stocks that advanced -13- being outweighed by the number of stocks that declined -23. Sameer Agriculture & Livestock Limited (SALL), part of the Sameer Group (NSE: FIRE), announced plans of setting up a 3 billion shillings milk factory in Nakuru; that would employ an estimated 500 people. This is expected to increase the company’s revenues, as the dairy industry is expected to double in the next 10 years. The share price shed off closed 9.84 percent to 2.75 shillings from 3.05 shillings.

On other news, Equity Group Ltd (NSE: EQTY) launched a series of revolutionary digital banking solutions that will greatly improve on operational efficiency. The new services will be offered through a mobile app that will enable its customers to open new accounts conveniently via a mobile device. The app will also enable clients conduct various transactions including loan applications, paying bills, buying and selling shares as well as procuring insurance.

Actively Traded in shares

E.A Breweries Ltd (NSE: EABL) was the most actively traded stock on Tuesday accounting for 31.69 percent of the total market value traded activity. Safaricom Ltd (NSE: SCOM also registered high levels of activity, accounting for 30.09 percent of the total market turnover.

Gaining stocks

Express Kenya Ltd (NSE: XPRS) topped the gainers chart, posting a 6.67 percent increase to close the day at 3.20 shillings. Stanlib Fahari I-REIT Ltd (NSE: FAHR-I) followed suit, registering a 4.30 percent gain to close at 14.55 shillings.

Foreign Investors participation at the NSE on Tuesday

The foreign investors accounted for 80.31 percent of total turnover against 19.69 percent of local participation. Distribution activities took center-stage, resulting in net outflows worth 45.49 million shillings relative to net outflows worth 281.98 million shillings on Monday.

East Africa Breweries Limited (NSE: EABL) which recorded a turnover of 192.89 million shillings representing 30.29 percent of total activity and 37.72 percent of foreign investor activity, was the day’s heavily traded stock by foreigners, followed by Safaricom Limited (NSE: SCOM) recording a turnover of 138.56 million to account for 21.76 percent of total market activity and 27.09 percent of foreign investor activity.

East Africa Breweries Limited (NSE: EABL) posted the day’s highest net inflows worth 9.17 million and the day’s highest net outflows, worth 40.27 million, were posted by the Safaricom Limited (NSE: SCOM).

The Kenyan shilling

The Kenyan shilling ended the day posting mixed performance against international and regional peers. The local currency retreated a marginal 0.02 percent against the US dollar with the greenback shrugging the weak labor data that was announced last week.

The US dollar is having a boost from investors who have increased the odds of a rate hike in the latter part of the year. The British pound continued its steady slide into the abyss with the local currency strengthening 0.42 percent against the Pound to close at 125.26.

The Pound has suffered a pounding on signs the nation will have a hard landing after its formal exit from the EU. On the regional front, the shilling gained 0.58 percent against the South African Rand to end the day at 7.32. The rand’s weakness was attributed to court summons against its embattled Finance Minister Pravin Gordhan surrounding the establishment of a tax department investigation unit a decade ago.