Equities turnover for the week ended shed 8.3 percentage points from 35.6 million US dollars recorded the previous week.
According to data from Cytonn Investments, the drop in revenues at the equities market took the Year to Date (YTD) turnover to 190.1 million US dollars.
Overall, the equities market was on a downward trajectory in the week ended, with NASI, NSE 20 and NSE 25 declining by 3.7, 1.7 percent and 2.9 percent, respectively.
The downward performance consequently took the equities YTD performance to losses of 2.4, 2.0 and 2.3 percent, for the NASI, NSE 20 and NSE 25, respectively.
Data from the NSE indicates that the performance in NASI was driven by losses recorded by large-cap stocks such as Bamburi, Safaricom, DTBK, and Equity of 6.9, 5.8, 5.5 and 3.9 percent, respectively.
Foreign investors turned net sellers for the week, with a net selling position of USD 9.6 mn from a net buying position of USD 1.1 million recorded the previous week.
The market is currently trading at a price to earnings ratio (P/E) of 11.2x, 15.1 percent below the historical average of 13.2x, and a dividend yield of 5.8 percent, 1.9 percent 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,” analysts from Cytonn say.
The current P/E valuation of 11.2x is 15.9 percent above the most recent trough valuation of 9.7x experienced in the first week of February 2017, and 35.4 percent above the previous trough valuation of 8.3x experienced in December 2011.
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