Kenyan Stock Market Exhibited a Downward Trend in October

Market analysts say stock market activities remained subdued in the month of October attributed to losses in large caps at the bourse.

The NASI, NSE 20 and NSE 25 losing 0.1 percent, 0.6 percent, and 1.6 percent, respectively, taking their YTD performance as at the end of October to 21.5 percent, 19.0 percent and 17.1 percent for NASI, NSE 25 and NSE 20, respectively.

The losses in large caps were, led by KCB Group, Coop Bank, and DTBK, which lost 7.3 percent, 6.5 percent, and 3.2 percent, respectively.

Since the February 2015 peak, the market has lost 7.5 percent and 30.9 percent for NASI and NSE 20, respectively.

Equities turnover declined by 36.0 percent during the month to USD 90.7 mn from USD 141.7 mn in September 2017, taking the YTD turnover to USD 1,399.2 mn.

Foreign investors turned net buyers for this month with net inflows of USD 7.2 mn, compared to net outflows of USD 50.9 mn witnessed in September 2017.

Year to date, foreign investors are net sellers with net outflows of USD 104.1 mn.

“We expect the market to record subdued activity over the coming few weeks as market players remain cautious of the political uncertainty in the country. Despite this, we expect the market to remain supported by improved investor sentiment once fear and uncertainty dissipates, as investors take advantage of the attractive stock valuations,” notes Cytonn Investments.

Source Cytonn Investments.