Safaricom Limited stock highest traded stock of the day.

The equities segment sustained its decline past a 10-month low, as foreign participation reasserted its dominant position in the market; although activity was mainly distributive.

The NSE-20 share index dropped 0.36% to 4835.75 points, as the NSE All Share Index (NASI) shed 0.92% to 161.31 points to fix the YtD return at -1.03%. Market capitalization emphasized the current performance of the local bourse as it dropped 0.92% to close at KES 2.256Tn, as equity turnover gained by 58.541% to KES 1,547.90Mn. The market breadth, illustrated by the A-D ratio, showed 17 stocks declined and only 14 advanced, emphasizing a 1.21x ratio. Safaricom Ltd (NSE: SCOM) and Equity Group Holdings Ltd (NSE: EQTY) were the most actively traded counters today, accounting for 77.81% of total value traded; as the later benefitted from positive investor sentiment.

Equity Group Holdings Ltd announced their entry into a new market, the Democratic Republic of Congo, as the first phase of their penetration into 10 new markets. The agreement with ProCredit Holding AG & C0., will see Kenya’s biggest lender by customer base accumulate another accolade as the first Kenyan bank in the DRC; in which investors expect the bank to benefit from first-mover advantage. This resulted in the counter being the second highest traded stock on the local bourse, spurred by a recognized underserved retail market segment in the DRC and Equity’s experience.

NSE Equity Market Highlights

Safaricom Limited stock (NSE: SCOM) was the most traded stock of the day accounting for 63.34% of the total value traded. Equity Group Holdings Ltd (NSE: EQTY) followed, with 14.46%.

Liberty Kenya Holdings Ltd (NSE: CFCI) was the biggest gainer of the day up 3.13% to KES 24.75, sustaining a steady increase it has enjoyed this month.

Crown Paints Kenya Ltd (NSE: BERG) was also amongst the top gaining counters rallying by 2.56% to KES 160.00.

Flame Tree Group Holdings Ltd (NSE: FTGH) was the main losing stock dropping by 4.71% to 8.10, closely followed by E.A Portland Cement Co. Ltd (NSE: PORT); which dropped 3.39% to 57.00.

Foreign Investor Participation

Foreign investor participation accelerated during Wednesday’s trading session accounting for 87.82% of total turnover against 12.18%local participation. Investors were dominant on the sell side resulting in net outflows worth KES 83.15Mn compared to net inflows worth KES 3.78Mn on Tuesday.

Foreign investors accounted for 87.82% of the NSE turnover as compared to 12.18% on Tuesday.

Investors engaged in distributive activities, resulting in net outflows worth KES 83.15Mn relative to net inflows worth KES 3.78Mn on Tuesday.

Safaricom Limited stock (NSE: SCOM) was the day’s highest traded stock, recording a turnover of KES 916.69Mn to account for 59.22% of total market activity and 67.43% of foreign activity. Equity Bank Holdings (NSE: EQTY) followed with a turnover of KES 187.58Mn representing 12.12% of total market activity and 13.80% of foreign activity.

Cooperative Bank Limited (NSE: COOP) posted the day’s highest inflows of KES 43.53Mn, whilst Safaricom Limited (NSE: SCOM) posted the day’s highest outflows worth KES 43.53.70Mn

Currency

Performance: The Kenyan Shilling (KES) traded on a steady note against the US Dollar on Wednesday after it shed initial gains made earlier this week when the CBK pre-opened its policy meeting, following the recent steep decline of the USDKES exchange rate. The local unit’s steady pattern may be driven by sentiments of a probable interest rate hike following the MPC meeting now scheduled for 9th June 2015.

Meanwhile, in comparison, the KES retained its value against regional peers, as it registered modest gains against the Tanzanian (TZS) and Ugandan Shilling (UGX); garnering 0.40% and 0.35%, respectively. The TZS has succumbed to the largest losses against the USD amongst its EAC peers this month as investors and corporates have spurred dollar demand amid fear of further devaluation as the USD retains its global rally.