Kenyan equities on downward trend due to losses in large-cap stocks

The Kenyan stock market witnessed a downward trend last week attributable to losses in select large-cap stocks such as Safaricom, KCB Group and Equity Group.

The NSE 20, NASI and NSE 25 losing 1.5 percent, 0.7 percent and 0.4 percent, respectively, taking their YTD performance to 23.4percent, 22.0percent and 18.8 percent for NASI, NSE 25 and NSE 20, respectively.

Safaricom, KCB Group and Equity Group, lost 1.9 percent, 0.6 percent and 0.6 percent, respectively.

Since the February 2015 peak, the market has lost 7.3 percent and 31.2 percent for NASI and NSE 20, respectively.
Equities turnover decreased by 24.8 percent to close the week at USD 44.4 mn from USD 55.4 mn the previous week.

Foreign investors remained net sellers with a net outflow of USD 18.7 mn compared to a net outflow of USD 27.0 mn recorded the previous week.

“We expect the market to record subdued activity over the coming few weeks as market players remain cautious of the renewed political uncertainty in the country,” according to Cytonn Investments. “ Despite this, we expect the market to remain supported by improved investor sentiment once the country takes to the polls for the presidential elections scheduled for mid-October, and fears and uncertainty dissipates, as investors take advantage of the attractive stock valuations in undervalued sections of the market.”