Nairobi Bourse Equity Turnover Declines, Foreign Investors Dominate Trading

Kenyan Equities Continue Downward Trend

Turnover at the Nairobi Securities Exchange (NSE) and the number of shares traded declined by 11.3 percent and 22.3 percent, respectively week ending May 21.

Turnover stood at Ks 2.4 billion against Ksh 4.9 billion achieved the previous week.

Despite the decline, the NASI, NSE 25 and NSE 20 share price indices increased by 3.3 percent, 2.5 percent and 1.7 percent, respectively.

During the week, market capitalization increased by 3.3 percent.

“Foreign investors remained net sellers during the week, with the net selling position declining by 70.6 percent to USD 7.1 mn, from a net selling position of USD 24.0 mn recorded the previous week, a trend replicated in other emerging equity markets globally as foreign investors sold off riskier assets in favor of safe havens,” Analysts from Cytonn Investments report.

On Friday, the NASI, NSE 20, and NSE 25 gained 1.2 percent, 0.5 percent and 1.5 percent respectively.

Kenya Airways was the leading gainer in Friday’s session, surging 9.8 percent to close at over a six-month high of KSh 3.15 on local demand.

Kakuzi Plc, a Kenyan agricultural cultivation and manufacture company, came out last with an end-of-day price depreciation of 9.72 percent closing at KSh 320.50 per share.

KCB was the top traded counter, accounting for 49.4 percent of market activity registering the highest volume of 8.6 Million traded shares, followed by Safaricom (6.06 Million), Equity (2.62 Million), and Absa Bank (1.43 Million).

Nairobi Bourse Equity Turnover Declines, Foreign Investors Dominate Trading

Safaricom and Equity Bank jointly accounted for 42.9 percent of total turnover. Safaricom ticked up 1.9 percent to close at Ksh 29.35 on increased foreign demand, while Equity Bank edged up 0.6 percent to close at Ksh 36.15.

“Foreign investors ended the week as net sellers, recording net outflows of USD 2.0 million in Friday’s session. KCB led the selling charge with net outflows of USD 2.4 million while Safaricom led the buying charge with net inflows of USD 1.1million,” Standard Investment Bank said in their Daily Report.

The NSE will be closed on Monday 25th May to mark Idd-ul-Fitr, the time for Muslims to celebrate their dedication throughout the 29-30 days of fasting during the holy month of Ramadhan.