Weekly Kenyan Market Equity Turnover Increases by 10.6pc

The weekly charts for the Kenyan equities market was on a downward trend, with NSE All-Share Index (NASI) and NSE 25 declining 1.1% and 0.6%, respectively, while NSE 20 was on an upward trend gaining 0.4%, taking their year to date (YTD) performances to (3.9%), (19.2%) and (12.0%)%, respectively.

Since the February 2015 peak, NSE 20 and NASI have lost 40.6% and 21.1%, respectively.

YTD information is useful for analyzing business trends or comparing performance data, and the acronym often modifies concepts such as investment returns, earnings and net pay.

According to Cytonn Investments, last week’s bourse performance was driven by losses in select large cap stocks such as EABL and Safaricom, which lost 3.9% and 2.8%, respectively, despite gains of 4.7% and 2.9% by Co-operative Bank and KCB Group, respectively.

Equities turnover increased by 10.6% to close the week at Kshs 26.1 mn from Kshs 23.6 mn the previous week.

Foreign investors turned net buyers with net inflows of USD 1.7 mn, compared to a net outflows of USD 1.1 mn recorded the previous week, with foreign investor participation increasing to 68.1% from 55.7% recorded the previous week.

Safaricom was the top mover during the week accounting for 33.0% of market activity and losing 2.8% during the week.

The market is currently trading at a price to earnings ratio of 11.0x, versus a historical average of 13.7x, with a dividend yield of 6.2% versus a historical average of 3.5%. The charts below indicate the historical PE and dividend yields of the market.