3rd December 2022

Kenyan Equity Market Indices Vibrant with Foreign Investors Remaining Net Buyers

Tight liquidity could accelerate upward pressure on yieds

The key Kenyan equity market indices closed higher despite NSE (Nairobi Securities Exchange) 20 share index NSE 20 likely attributable to a dip in BAT’s price (-5.2% w/w).

During the week, NASI and NSE 25 gained by 1.2% and 1.0%, respectively, while NSE 20 declined by 0.3%, taking their YTD performance to gains of 13.9%, 1.9% and 12.0% for NASI, NSE 20 and NSE 25, respectively.

EABL was the top five traded highest gainer (+2.9%), owing to buying interest from the foreign desk while Kenya Re-Insurance recorded the highest loss in its share price (-13.7%), among the top movers in the week, owing to high sell-offs from the foreign desk after announcement of a profit warning for its FY18 results.

Foreign investor activity averaged 62.0% of total NSE turnover in the week from 75.9% the previous week, recording net inflows of Ksh 135.1 million

Safaricom was the highest traded counter by the foreign desk accounting for 32.7% of total foreign trades.

As the deadline closes in for FY18 results release, we expect increased activity across the market though still concentrated on the index counters during the week.

Source- Genghis Capital Weekly Strategy