Nairobi Bourse Turnover Declines, Indices End in Mixed Performance

Foreign investors have turned bullish on Kenya as the Nairobi Securities Exchange (NSE) with NASI, NSE 20 and NSE 25 gaining by 3.0%, 0.5% and 2.6%, respectively

The Nairobi Securities Exchange (NSE) closed the week ending June 5th on a decline in equities turnover,  a 1.5 percent gain in the NASI but a decline in NSE 20 and NSE 25 by 0.4 percent and 0.1 percent respectively.

The turnover declined by 2.3 percent of the 98.9 million shares traded valued at to stand at Ksh 2.3 billion (USD 21.6 mn), from Ksh 2.37 billion (USD 22.2 mn) recorded the previous week, taking the YTD turnover to USD 715.3 mn.

The NASI performance was driven by gains recorded by large-cap stocks such as Standard Chartered Bank, Safaricom, EABL, NCBA and Co-operative bank of 4.2%, 3.3%, 3.1%, 3.0% and 2.4% respectively. However, they were weighed down by losses recorded by other large-cap stocks such as ABSA, Equity and Bamburi of 6.9%, 6.0% and 4.7%, respectively.

Foreign investors remained net sellers during the week, with the net selling position declining by 23.5% to USD 5.7 mn, from a net selling position of USD 7.5 mn recorded the previous week, taking the YTD net selling position to USD 205.6 mn.

Nairobi Bourse Turnover Declines, Indices End in Mixed PerformanceOn Friday, 35,848,400 shares were traded valued at Ksh 706.4. The NASI retreated from a short-lived rally, shedding 0.3%, on price dips on some of the large caps; the NSE 25 contracted 0.6%, while the NSE 20 inched up 0.4% on the price uptick of EABL and BAT shares.

 

Safaricom, Equity Bank, and KCB  were the most traded counters, cumulatively accounting for 80% of total turnover.

According to the Standard Investment Bank, Equity Bank was the leading laggard in the top movers’ list, dropping 3.2% to close at a seven-week low of Ksh 33.15, on foreign selling. Safaricom closed in the red, thus losing some of its recent winning momentum.

Britam made a surprise entry into the top movers’ list, however, the insurer investors had a sad day at the office, as the counter dropped 3%, on foreign selling. Conversely, Kenya Power also made a stun appearance in the list, jumping 5.7%, on local trading.

Foreign investors were net sellers, registering net outflows of USD 1.9m – 58.4% higher than the previous session.