Skip to content
Market News

Equities Dip Further in May Due to Declines in Large Caps

BY Soko Directory Team · June 4, 2018 09:06 am

During the month of May, the equities market was on a downward trend with NASI, NSE 20 and NSE 25 declining by 3.9, 10.8 and 3.7 percent respectively taking their YTD performance as at the end of May to 0.8 percent (10.2 percent) and 1.9 percent for NASI, NSE 20 and NSE 25, respectively.

The equities market performance during the month was driven by declines in large caps such as Diamond Trust Bank (DTB), Barclays Bank, Cooperative Bank and KCB Group, which declined by 11.2, 10.9, 8.4 and 8.0 percent respectively, owing to the bank’s closing their books for dividend during the month.

During the week, the equities market was also on a downward trend with NASI, NSE 20 and NSE 25 declining by 1.6, 0.9 and 1.5 percent respectively due to declines in counters such as Standard Chartered, Cooperative Bank, and Safaricom, which declined by 3.8 3.1 and 2.6 percent respectively.

Equities turnover rose by 22.0 percent during the month to USD 182.5 million from USD 149.6 million in April taking the YTD turnover to USD 0.9 billion.

Foreign investors remained net sellers for the month of May as they sought to realize the capital gains on various counters, in addition to receiving dividend income.

Most investors exited the market at the relatively healthy valuation, with possible re-entry at cheaper valuations in the future.

The market is currently trading at a price to earnings ratio (P/E) of 13.6x, 0.7 percent above the historical average of 13.5x, and a dividend yield of 3.8 percent slightly above the historical average of 3.7 percent.

The current P/E valuation of 13.5x is 39.2 percent above the most recent trough valuation of 9.7x experienced in the first week of February 2017, and 62.7 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

Soko Directory is a Financial and Markets digital portal that tracks brands, listed firms on the NSE, SMEs and trend setters in the markets eco-system. Find us on Facebook: facebook.com/SokoDirectory and on Twitter: twitter.com/SokoDirectory

Trending Stories
Government and Policy Ministry Of Education Announces New School Calendar For 2025 Getrude Mathayo
Market News Kenya Has The Highest Fuel Prices On The African Continent Thanks To An Archaic & Repugnant Tax Regulation Environment Steve Biko Wafula
Entrepreneur's Corner The Brutal Truth: Why Genuine Business Isn’t For The Weak Steve Biko Wafula
Technology Meta-Sponsored Vambo AI & Futurize Hackathon Drives Innovation At Kenya Innovation Week 2024 Soko Directory Team
Lifestyle I&M Bank Launches Milele Rewards, To Let Customers Earn Points Through Their Cards Soko Directory Team
Related Articles
Market News Savannah Clinker Withdraws Competing Offer For Bamburi Cement Soko Directory Team
Market News November PMI Expands To 50.9, CBK MPC Interest Rate Decision Tomorrow Soko Directory Team
Market News Savannah Clinker Seeks CMA’s Approval For Offer Extension: No Money? Soko Directory Team
Market News Kenyan Shillings Maintains Resilience Against The US Dollar With Slight 0.06% Shedding Soko Directory Team
Market News UBA Group Opens Up A Ksh 18.5 Billion Rights Issue Soko Directory Team
Explore Soko Directory
Banking Blogging Commodity Watch Did you know Entertainment Entrepreneur's Corner Feature Government and Policy Headlines Investment Lifestyle Market News Money Opinion Press Releases Stock Watch Technology
Soko Directory Archives