Kenyan markets closed marginally higher last week reversing a three-week bearish sentiment Genghis Capital reports.
During the week, the NASI, NSE-20 and NSE-25 increased 2.0%, 0.0% and 2.0%, respectively taking their YTD performance to gains/ (losses) of 12.5%, 10.3%, and (7.6%) for NASI, NSE 25 and NSE 20, respectively.
Turnover increased by 34.0%, posting a turnover of Ksh 3.3 billion compared to a turnover of Ksh 2.5 billion previously.
Trading activity was mainly on the large caps; Safaricom, Equity Group, KCB Group, BAT Kenya and EABL.
The foreign investors accounted for 66.9% of the week’s total activity, compared to 77.7% in the previous week.
Foreign investors were net buyers during the week, logging net inflows of Ksh 60Mn compared to a net outflow of Ksh 589Mn in the previous week.
Net buying activity was largely on Safaricom and Equity Group while net selling activity was majorly on KCB Group, EABL and BAT Kenya.
During the week, Centum Investments, Stanbic Bank, HF Group, I & M Bank, Diamond Trust Bank released their Q3’2019 financial results. Kenya Power & Lighting Company Plc and Kengen Plc issued a second notice that they will delay releasing their Full Year results due to the absence of an Auditor General.
Cytonn Investments remain “Positive” on equities for investors as the sustained price declines have seen the market P/E decline to below its historical average.
“We expect increased market activity, and possibly increased inflows from foreign investors, as they take advantage of the attractive valuations, to support the positive performance.”