Equities Close Lower on Tuesday Amid Calls For Product Boycott

Equities closed lower for the second day on Tuesday, with NSE All-Share Index at a 1-week low as uncertainty occasioned by calls for products boycott engulfs the corporate sector.

The main opposition in Kenya, National Super Alliance has called on its followers to boycott products from Safaricom Limited, Bidco, and Brookside Dairy in what they are terming as teaching them a lesson for aiding in a “flawed election.” already Safaricom Limited has started feeling the heat with MPESA operators in Kisumu and Migori reporting dwindling in incomes as a result of the boycott call.

The market turnover, on the other hand, rose 104.8 percent to trade shares valued at 1.1 billion shillings. Activity was heavy around Safaricom Plc (NSE: SCOM), at 77.2 percent of the total market activity.

Large banks also saw increased participation mainly on Equity Group Holdings Plc (NSE: EQTY), KCB Group Ltd (NSE: KCB), The Co-operative Bank of Kenya (NSE: COOP) and Diamond Trust Bank of Kenya Ltd (NSE: DTK).

Foreign investors dominated trading at a higher participation at 68.3 percent than the previous session’s 59.6 percent of total activity.

Foreigners continue accumulating EQTY and added new positions on Centum Investments Plc (NSE: ICDC) and Diamond Trust Bank Kenya Ltd (NSE: DTK).

The session saw an unusually large net sell position on SCOM of 181.7 million shillings, while other net sell positions were on East African Breweries Ltd (NSE: EABL) and KCB. Foreigners were net sellers in the session, with a net outflow of 173.2 million shillings.

Bond turnover rose 3204 percent to 1.62 billion shillings on 39 deals in the session from 32 deals traded previously.

On Tuesday, the National Treasury revised the 2017 economic growth for the third time this year signaling tough time ahead even as the country plunges into yet another political uncertainty.