Weekly Market Report From 30th November To 4th December 2015
In our review of the weekly market report from Monday 30th November to Friday 4th December 2015,we try as much as possible to cover the following areas.
- The Kenyan Market-The stock market,the forex market and major business news
- Other East African Markets-Stock market indices from Uganda,Tanzania and Rwanda.
- The Global Market-Major Global indices
KENYAN MARKET
The Week in Numbers
Equity Market
- This week the NSE 20 Share Index declined 0.10 percent to close at 3,990.64 while NASI index went up 0.25 percent to close at 143.29.
- Turnover, total volumes traded and total market capitalization stood at KES 2,803.30 million, 88.01 million and KES 2,015.60Billion respectively at the end of the week.
| Description | Current Week | Previous Week | % Change |
| NSE 20 | 3,990.64 | 3994.56 | DOWN 0.10 |
| NASI | 143.29 | 142.93 | UP 0.25 |
| NSE 25 | 4,158.76 | 4,171.39 | DOWN 0.30 |
| DEALS EXECUTED | 5,724 | ||
| VOLUME OF SHARES | 88,006,000 | ||
| MARKET CAP (KES Bn) | 2,015.605 | ||
| MARKET CAP (USD $) | 19.735 | ||
| MAIN MARKET P/E | 13.29 |
Average Sector P/E
| Sector | P/E |
| Agriculture | 35.31 |
| Automobiles & Accessories | 108.64 |
| Banking | 7.88 |
| Commercial & Services | -3.09 |
| Construction & Allied | 17.01 |
| Energy & Petroleum | 3.98 |
| Insurance | 9.10 |
| Investment | 7.61 |
| Investment Services | 11.74 |
| Manufacturing & Allied | 32.37 |
| Telecommunication & Technology | 19.44 |
Top Movers (Volumes)
| Counter | Price | Volume (Millions) |
| Safaricom | 15.55 | 35.30 |
| Equity | 41.50 | 13.66 |
| KCB | 40.25 | 7.40 |
| Kenya Reinsurance | 22.00 | 4.57 |
| Co-op | 18.20 | 4.30 |
Top Movers (Turnover)
| Counter | Price | Turnover (Millions) |
| EABL | 275.00 | 726.74 |
| Equity | 41.50 | 566.72 |
| Safaricom | 15.55 | 548.43 |
| KCB | 40.25 | 297.76 |
| Kenya Re | 22.00 | 100.61 |
Note:
- KCB had the highest net foreign outflows, this has been the case for the past few weeks. This is a concern for Kenyan WallStreet and calls for thorough analysis and monitoring on KCB. From an overview we can come to these conclusions:
- EABL had the highest net foreign inflows.
- There was increased turnover in Equity Bank and EABL. This accounts for 46.4% of the week’s turnover. Foreign Investors have been net sellers for the past 6 weeks. Foreign investor participation rose to 75.5% from 63.3% the previous week.
- Foreign investors know something that locals are not aware of e.g. growth prospects etc.
- Brokers have been creating a market demand for foreigners who hold large blocks of shares by inducing the locals to buy it since it is a quality franchise and regarded as cheap in order to liquidate foreign investor holdings.
- Foreign investors are preparing for the FED rate hike, thus they are reducing emerging and frontier markets exposure.
- Purely random.
- Kenya Re has been up by 29% YTD due to foreign demand.
Gainers
| Counter | Price | Shares Traded in the week | % Change W/W | % Change YTD |
| E.A. Portland Cement | 50.00 | 900 | 20.5 | (13.8) |
| Umeme | 20.00 | 2,400 | 15.6 | (4.8) |
| Standard Group | 31.50 | 3,400 | 9.6 | (9.4) |
| Crown Berger | 62.50 | 72,100 | 6.8 | 68.9 |
| Scangroup | 29.75 | 110,900 | 6.3 | (34.3) |
Losers
| Counter | Price | Shares Traded in the week | % Change W/W | % Change YTD |
| Atlas | 1.70 | 1,052,800 | (27.7) | (85.9) |
| Longhorn | 4.00 | 128,600 | (15.8) | (56.8) |
| Eaagads | 22.00 | 99,000 | (12.0) | (47.6) |
| Kapchorua | 157.00 | 2,300 | (9.8) | 13.8 |
| B.O.C | 95.00 | 1,200 | (9.5) | (24.0) |
Fixed Income Market
Fixed Income Traders had a busy week. The debt market was very active, bond turnover totaled a whopping KES 11.065 Billion this was up by 431.4% from KES 2.082 Billion the previous week. 166 Deals were executed.
Majority of the bonds traded were short term bonds. 1 to 5 year bonds had a total of 77 trades. Concentrated deals were on the One year Bond which had 21 trades. The average traded yield was 13% with a turnover of KES 4.82 Billion.
Family Bank Medium Term Note had 3 trades worth KES 200 Million. Average yield traded was 16.25%. Corporate Bonds are usually not active in the market.
Market News
British American Tobacco
British American Tobacco Kenya was linked to claims of bribery in the British television programme Panorama.
EABL group relations director Julie Adell-Owino resigned after she was extensively named in the BAT-Kenya bribery claims in a BBC Panorama program. She described this as a ‘shock to her and her family.’
“In 2012, BAT lobbyist Julie Adell-Owino arranged bribes totalling US$26,000 for three public officials in Rwanda, Burundi and the Comoros Islands. All three officials were connected to a United Nations effort to reduce the number of tobacco related deaths, the Framework Convention on Tobacco Control,” read part of the story. On phone, Ms Adell-Owino noted that it was her request to leave the company.
The full extent of the impact of the claims made in Panorama have not yet been established and may take some time. If it goes against them, their parent company will likely be fined.
Atlas Development & Support Services Ltd
Liquidation
ADSS announced that it has taken a decision to place its Kenyan subsidiaries into liquidation by way of “creditors’ voluntary liquidation.” It has been less than 2 years since Atlas began operations in Kenya. The liquidation is only on its Kenyan subsidiaries and not the holding company which is based in London. Atlas wants to focus administrative functions and activities in Ethiopia where they have a better chance of survival. The global hit on oil has led to the failure of their key clients in settling debts this has forced the move.
Atlas will still remain listed on the Nairobi Securities Exchange.
Laying off Staff
Atlas announced that it was laying off nearly 750 staff as part of its restructuring program to cut down costs.
Kenya Commercial Bank
KCB, second largest mortgage financier, will hold its last property tour this year for potential home buyers this Saturday as it cranks up plans to set up own building arm.
Their mortgage business is targeting to enter the construction sector by building cheaper houses targeting emerging middle class. KCB has been engaging development partners in Brazil and Mexico for seed capital as it looks to deploy affordable building technology for its proposed units.
East African Portland Cement
Portland Cement is set to publish their full year results for the year ended 30th June 2015 on 8th December 2015.
Fahari I-REIT
The NSE held a ceremony on Friday to formally launch the first REIT, known as the STANLIB Fahari I-REIT, a vehicle worth 3.6 billion shillings ($35.26 million) that is invested in a portfolio of properties that generate rental income. The NSE expects to list 2 new Real Estate Investment Trusts (REITS) in Q1 2016.
Sugar
Reuters:
GOK invited bids for the purchase of stakes in five state-owned sugar companies, seeking to complete reforms aimed at making its ailing sugar industry more competitive.
The government will sell a 51 percent stake in the five sugar companies to strategic investors and reserve another 24 percent for farmers and employees.
The government will then sell a remaining 25 percent stake in the Sony, Chemelil, Nzoia, Muhoroni and Miwani milling companies in an initial public offering once the factories are profitable.
Safaricom
Safaricom Ltd expects Kenyans to start trading stocks on their mobile phones early next year, using a product it developed to enable customers to buy government bonds, Chief Executive Officer Bob Collymore said. The platform will work just like M-Akiba that was initiated in September as a way for low-income earners to buy fixed-income securities for as little as 3,000 shillings. The government postponed the start of the service in October due to rise in interest rates.
Longhorn
Longhorn issued a notice to shareholders seeking approval to increase the number of shares from 146.25m to 785.5m through a rights issue.
East African Markets
Uganda
Turnover was up by 68.15% w/w to UGX 2.48 Billion. USE All Share Index declined 1.94% w/w to close at 1,727.60. Volume traded during the week was 7.75 Million shares.
| Counter | Price | Weekly Change |
| BATU | 15,000.00 | UNCHANGED |
| BOBU | 155.00 | UNCHANGED |
| DFCU | 980.00 | UNCHANGED |
| NIC | 11.00 | UNCHANGED |
| NVL | 606.00 | UNCHANGED |
| SBU | 32.00 | UNCHANGED |
| UCL | 15.00 | UNCHANGED |
| UMEME | 646.00 | DOWN 0.62% |
Rwanda
RSE had a Weekly Turnover of RWF 2.38 Billion. The RSE All Share Index was down by 0.90% w/w to close at 130.62 points. 12.79 Million Shares were traded during the week.
| Counter | Price | Weekly Change |
| BOK | 280.00 | UNCHANGED |
| BLW | 174.00 | DOWN 12.56% |
Tanzania
The Dar Es Salaam All Share Index weekly turnover was TZS 64.72 Billion. 5.43 Million Shares were traded. DSEI was down by 0.55% w/w to close at 2,356.16 points.
| Counter | Price | Weekly Change |
| ACA | 5,810.00 | UP 3.38% |
| CRDB | 400.00 | UP 1.27% |
| DCB | 570.00 | UP 0.88% |
| MBP | 600.00 | UNCHANGED |
| NMB | 2,790.00 | UNCHANGED |
| PAL | 470.00 | UNCHANGED |
| SWIS | 7,360.00 | UP 0.14% |
| TBL | 15,040.00 | UP 0.27 |
| TCCL | 2,690.00 | DOWN 2.89 |
| TCC | 16,100 | UNCHANGED |
| TPCC | 3,000.00 | DOWN 9.91% |
| TTP | 650.00 | UNCHANGED |
| TOL | 760.00 | UNCHANGED |
Global Markets
Europe
European stocks were down on a 3 week low, this was catalyzed by disappointing stimulus measures by Mario Draghi.
Asia
Asian stocks took a hit due to the ripple effect of Mario Draghi’s stimulus program which disappointed some investors.
US
Nasdaq dropped by 1a.99% to 5021.20
