The equities market was on a downward projection with NASI, NSE 20 and NSE 25 declining by 2.5, 2.3, and 2.2 percent, respectively.
The decline in performances in the equities market took the Year to Date (YTD) performance to losses of 4.8, 5.9, and 4.5 percent for the NASI, NSE 20 and NSE 25, respectively.
According to Cytonn Investments, the decline in NASI was driven by losses recorded by large-cap stocks such as EABL, Safaricom, Bamburi and ABSA of 5.9, 3.5, 2.7 and 1.9 percent, respectively.
Equities turnover decreased by 25.5 percent during the week to USD 24.3 million, from USD 32.6 million recorded the previous week, taking the YTD turnover to USD 214.5 million.
Foreign investors maintained their position from the previous week as the net sellers for the week, with a net selling position of USD 12.2 million from a net selling position of USD 9.6 million recorded the previous week.
The market is currently trading at a price to earnings ratio (P/E) of 10.9x, 17.9 percent below the historical average of 13.2x, and a dividend yield of 5.9 percent, 2.0 percentage points above the historical average of 3.9 percent.
“With the market trading at valuations below the historical average, we believe there is value in the market,” say analysts from Cytonn.
The current P/E valuation of 10.9x is 12.1 percent above the most recent trough valuation of 9.7x experienced in the first week of February 2017, and 31.0 percent above the previous trough valuation of 8.3x experienced in December 2011.