Nairobi Equities Market Decline in Trading Volume and Turnover

Q1 2020: Nairobi Bourse More Exposed as Five Firms Rise Dominance 74pct 

Image I Courtesy NSE

Stocks at the Nairobi Securities Exchange (NSE) sank for the third consecutive week with the NASI, NSE-20, and NSE-25 retreating 2.5%, 2.3% and 2.2%, respectively, week on week.

This took their YTD performance to losses of 4.8%, 5.9%, and 4.5%, for the NASI, NSE 20 and NSE 25, respectively.

The performance in NASI was driven by losses recorded by large-cap stocks such as EABL, Safaricom, Bamburi and ABSA of 5.9%, 3.5%, 2.7%, and 1.9%, respectively.

Foreign investors accounted for 54.0% of the week’s total activity compared to 61.1% in the previous week. 

Foreign investors were net sellers for the second subsequent week posting net outflows of Ksh 1.3 billion compared to outflows of Ksh 967.4 million in the previous week.  The average daily volume stood at 16.4 Million against last week’s 26.5 Million.

Net buying activity was largely on Diamond Trust Bank while net selling was on Safaricom, Equity, EABL, COOP Bank and KCB Group.

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The market is currently trading at a price to earnings ratio (P/E) of 10.9x, 17.9% below the historical average of 13.2x, and a dividend yield of 5.9%, 2.0% points above the historical average of 3.9%.

Kenya Shilling depreciated

The Kenya Shilling depreciated by 0.7% against the US Dollar during the week to Kshs 101.3, from Kshs 100.6 recorded last week, as a result of increased end-month dollar demand from multinational companies and merchandise importers.

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