Equities Went Downhill In 2022 – Cytonn

During the year, the Kenyan equities market was on a downward trajectory with all indices declining with NASI, NSE 20, and NSE 25 down by 23.7, 12.4, and 16.6 percent respectively.

The equities market performance was driven by losses recorded by large-cap stocks such as Safaricom at 36.7 percent and Bamburi at 17.5 percent.

There were also losses in banking stocks such as KCB Group, Diamond Trust Bank Kenya, Equity Group, and Co-operative Bank Kenya of 16.4, 16.0, 15.6, and 5.4 percent respectively.

The losses were however mitigated by gains recorded by other banking stocks such as NCBA Group, Standard Chartered Bank Kenya (SCBK), and ABSA Bank Kenya of 54.6, 9.8, and 4.7 percent respectively. At the same time, BAT Kenya and EABL gained by 4.5, and 1.2 percent respectively.

In the banking sector, the Kenya-listed banks recorded a weighted average increase in the core earnings per share of 36.7 percent in Q3’2022, compared to a weighted average increase of 102.0 percent in Q3’2021.

At the same time, in the Insurance sector, the listed insurers recorded a weighted average increase in core earnings per share of share 16.0 percent in H1’2022, compared to a weighted average increase of 127.6 percent in H1’2021.

During the year, 11 companies issued profit warnings, as compared to 4 companies in 2021, and 15 companies in 2020.

The companies are Kakuzi Plc, The Limuru Tea Kenya Plc, Sanlam Kenya Limited, Unga Group Ltd, Liberty Kenya Holdings Ltd, Centum Investments Co Plc, Sameer Africa plc, Nairobi Securities Exchange PLC, Bamburi Cement PLC, Crown Paints Kenya Plc and Flame Tree Group Holdings Ltd.

Additionally, during the year, the Capital Markets Authority approved the listing by introduction of the Local Authority Pension Trust (LAPTRUST) Imara Income Real Estate Investment Trust (I-REIT) on the Nairobi Securities Exchange (NSE) under the Restricted Sub-Segment.

Four companies remained suspended at the Nairobi Securities Exchange, namely, Deacons (East Africa) PLC, ARM Cement PLC, Mumias Sugar Co. Ltd, and Kenya Airways.