EABL bond oversubscribed 180% as shilling remains flat in extended CBK mop ups

Equities

The bourse resumed trading after the Easter break with the NSE 20 share index shedding 0.33% to 5,179.76 points while the NASI dropped by 1.29% to 171.15 points. Market capitalization declined by 1.29% to KES 2.39Tn- as equity turnover dipped by 20.79% to KES 775.51Bn, largely due to price declines in majority of the counters. Kenya Commercial Bank Ltd (NSE: KCB) & Safaricom Ltd (NSE: SCOM) were the most active counters accounting for 76.89% of the day’s traded value.

East African Breweries Limited (NSE: EABL), released the results of its corporate bond issue following its closure on 17th March 2015. The 3-year tenor bond, that is expected to pay semi-annual coupons at 12.25% per annum, was oversubscribed by 180.88% amounting to KES 9.04Bn against a target of KES 5.00Bn. Allotment of bids stood at 55.29% with the oversubscription showing investor confidence in the breweries performance. Proceeds from the issue are anticipated to be utilized in the restructuring of the firms’ balance sheet, capital expenditure as well as for general purposes.

Foreign investor participation marginally increased during Tuesday’s trading session with foreigner’s accounting for 55.52% of total turnover from 54.08% registered on Thursday. Investors engaged in distributive activities; resulting in net inflows worth KES 28.67Mn compared to net outflows worth KES 119.93Mn on Thursday.
The highlights of the day’s trading activity are listed below:

Foreign investors accounted for 55.52% of the NSE turnover as compared to 54.08% on Thursday.

Investors engaged in distributive activities recording net inflows worth KES 28.67Mn relative to inflows worth KES 119.93Mn on Thursday.

Safaricom Limited (NSE: SCOM) was the day’s highest traded stock, recording a turnover of KES 182.19Mn to account for 23.49% of total market activity and 42.32% of foreign activity. Kenya Commercial Bank Limited (NSE: KCB) followed with a turnover of KES 161.38Mn representing 20.81% of total market activity and 37.48% of foreign activity.

Safaricom Limited (NSE: SCOM) posted the day’s highest inflows of KES 57.82Mn, whilst Kenya Commercial Bank Limited (NSE: KCB) posted the day’s highest outflows worth KES 29.48Mn.

The total index shed 0.54% with three segments advancing whilst the remaining nine segments declined. The Growth Enterprise Market Segment (GEMS) took pole position up 1.69% as Home Afrika Limited (NSE: HAFR) garnered 4.62% to a Vwap of KES 3.40. The Telecommunication & Technology segment was the worst performer contracting by 4.22% as its only constituent element Safaricom Limited (NSE: SCOM) shed 4.22% to a Vwap of KES 15.90.

Currency

Performance: The shilling began the week by weakening against all but one of its major international peers. The USDKES pair remained flat at 92.68 as the Central Bank mopped up KES 16.00Bn in repurchase agreements and Term Auction Deposits to limit a further slide to the 93.00 shilling mark. The shilling further weakened by 0.68% against the Sterling Pound (GBP) to 137.96 as recent data shows that the UK’s service sector accelerated to a 7-month high in March.

Large-Cap Index

The Large Cap index dipped slightly by 0.90% with market capitalization cutting back 1.63% to KES 2.00Tn. Volume of traded shares increased by 5.02% to 35.24Mn.

Nation Media Group Ltd (NSE: NMG) shored up 2.13% to KES 240.00 from a previous price of KES235.00 making it the top gainer in the large cap segment.

Mumias Sugar Ltd (NSE: MSC) shed 4.35% to KES 2.20 as the firm’s management undertook cuts in allowances to aid in the payoff of outstanding debt.

Mid-Cap Index

• The Mid Cap index declined by 0.29% as market capitalization extended by 0.21% to KES 276.07Bn with the volume of trades diminishing by 43.58% to 994,000.

• Total Kenya Ltd (NSE: TOTL) grew 7.22% reversing last week’s downtrend marking the day at a Vwap of KES 26.00.

• East African Cables Ltd (NSE: CABL) rescinded by 2.82% to KES 15.50.

Small-Cap Index

• The Small Cap Index contracted by 0.39% as market capitalisation decreased by 0.42% to KES 39.65Bn.

• Flame Tree Group Holdings Ltd (NSE: FTGH) was up; 2.16% to mark the day at a Vwap of KES 9.45.

• Standard Group Ltd (NSE: SGL) dived further by 6.99% for the day to a Vwap of KES 33.25.