During the week, the equities market recorded mixed trends with NASI gaining 1.3 percent while NSE 25 and NSE 20 recorded losses of 0.5 percent and 1.7 percent respectively.
The performance took the YTD of NASI, NSE 25 and NSE 25 performance to 31.4, 23.9 and 17.7 percent respectively.
This week’s performance was driven by gains of 3.7 percent and 0.9 percent by KCB Group and Safaricom, respectively, while Equity Group and Co-operative Bank lost 3.0 percent and 1.8 percent respectively.
Since the February 2015 peak, the market has lost 1.3 percent and 31.8 percent for NASI and NSE 20, respectively.
Equities turnover increased by 20.6 percent to USD 32.7 million from USD 27.1 million the previous week. Foreign investors remained net buyers with a net inflow of USD 3.3 million compared to a net inflow of USD 2.1 million recorded the previous week.
The market is currently trading at a price to earnings ratio (P/E) of 13.4x, similar to the historical average of 13.4x, and a dividend yield of 3.8 percent compared to a historical average of 3.7 percent.
The current P/E valuation of 13.4x is 37.8 percent above the most recent trough valuation of 9.7x experienced in the first week of February 2017, and 60.9 percent above the previous trough valuation of 8.3x experienced in December 2011. The charts below indicate the historical P/E and dividend yields of the market.