The Equities Market Lags During The Week Driven By Losses In Major Market Players

The equities market was on a downward trend with NASI, NSE 20 and NSE 25 losing 4.5, 2.5 and 3.6 percent respectively last week.

The performance took the indices’ YTD performance to 6.7, 0.0 and 11.4 percent for NASI, NSE 20 and NSE 25, respectively.

The week’s performance was driven by losses in Equity Group, Safaricom Ltd and BAT that declined by 8.1, 6.5, and 6.3 percent respectively.

For the last twelve months (LTM), NASI, NSE 20 and NSE 25 have gained 36.6, 17.8, and 34.9 percent respectively.

Equities turnover increased by 30.8 percent to USD 41.2 million, from USD 31.5 million the previous week.

The market is currently trading at a price to earnings ratio (P/E) of 14.9x, which is 11.2 percent above the historical average of 13.4x, and a dividend yield of 3.6 percent, lower than the historical average of 3.7 percent.

The current P/E valuation of 14.9x is 52.0 percent above the most recent trough valuation of 9.8x experienced in the first week of February 2017, and 79.5% above the previous trough valuation of 8.3x experienced in December 2011.