Foreign Investors Maintain Dominance at Kenya’s Stock Market

Foreign investors were bearish on Nairobi Securities Exchange (NSE) offloading their stakes on Safaricom and Equity Group, according to Genghis Capital.

Nairobi Securities Exchange

Kenya’s main equity indexes closed mixed on Friday amid 62.4 percent contracted turnover of Ksh 1.6 billion compared to Ksh 4.3 billion previously.

During the week, the NASI and NSE-25 edging up 2.9 percent and 3.7 percent while NSE-2 lost 0.5 percent. 

“Similarly, market capitalization rose by 1.6 percent. However, the number of shares traded and equity turnover declined by 21.2 percent and 36.2 percent, respectively,” said the CBK in its Weekly Bulletin. 

The performance of the NASI was driven by gains recorded by large-cap stocks led by the banking stocks which accounted for 48.27 percent of the week’s traded value.

Shares worth KSh 775 Million were transacted.

Equity Group closed the week 8.82 percent higher to KSh 37.65 moving 10.7 Million shares valued at KSh 385 Million. 

KCB Group share prices increased 1.09 percent to KSh 37.00 up from KSh 36.60 the previous week, with shares worth KSh 197.5 Million transacted. 

Safaricom maintained its position as the biggest mover as it released its 2019 financial results. The telco’s share price increased by 3.45 percent to KSh 28.50 up from KSh 27.55 registered the previous week.

Foreign investors were net sellers for the 11th subsequent week with net outflows of Ksh 632 million compared to outflows of Ksh 1.6 billion in the previous week. 

Net buying activity was on Jubilee Holdings while net selling was on the rest of the top traded counters.

“We are “Positive” on equities for investors as the sustained price declines have seen the market P/E decline to below its historical average and as such, we believe that investors should take advantage of the current attractive valuations in the market,” according to Cytonn Investments.