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Equities On A Downward Trajectory As Big Stocks Take A Hit

BY Soko Directory Team · April 22, 2024 10:04 am

KEY POINTS

The equities market performance was driven by losses recorded by large-cap stocks such as Equity Group, KCB, and Safaricom of 9.4%, 7.0%, and 5.6% respectively.

During the week, the equities market was on a downward trajectory, with NSE 25 declining the most by 3.8%, while NASI, NSE 10, and NSE 20 declined by 3.6%, 3.5%, and 2.1% respectively according to data from Cytonn Investments.

The performance of the indices took the YTD performance to gains of 20.9%, 18.2%, 15.9%, and 12.0% for NSE 10, NSE 25, NASI and NSE 20 respectively.

The equities market performance was driven by losses recorded by large-cap stocks such as Equity Group, KCB, and Safaricom of 9.4%, 7.0%, and 5.6% respectively.

The performance was, however, supported by gains recorded by large-cap stocks such as EABL and BAT of 11.2% and 0.9% respectively.

During the week, equities turnover increased by 15.7% to USD 12.2 mn from USD 10.6 mn recorded the previous week, taking the YTD total turnover to USD 171.4 mn.

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Foreign investors remained net buyers for the second time in three weeks with a net buying position of USD 0.2 mn, from a net buying position of USD 2.4 mn recorded the previous week, taking the YTD foreign net selling position to USD 14.9 mn.

The market is currently trading at a price-to-earnings ratio (P/E) of 5.4x, 55.1% below the historical average of 12.0x. The dividend yield stands at 8.2%, 3.7% points above the historical average of 4.5%.

Key to note, NASI’s PEG ratio currently stands at 0.7x, an indication that the market is undervalued relative to its future growth. A PEG ratio greater than 1.0x indicates the market is overvalued while a PEG ratio less than 1.0x indicates that the market is undervalued.

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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

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