This edition of the weekly market report highlights all market events from Monday 7th to Friday 11th December 2015.
Kenyan Market Performance
This week the NSE 20 and NASI index went up 0.11 percent and 1.00 percent respectively to close at 3,995.09 and 144.72.
Turnover, total volumes traded and total market capitalization stood at KES 3,548.50 million, 122.04 million and KES 2,035.71 Billion respectively at the end of the week.
Equity Market In Numbers
| Description | Current Week | Current Week | % Change |
| NSE 20 | 3,995.09 | 3,990.64 | UP 0.11% |
| NASI | 144.72 | 143.29 | UP 1.00% |
| NSE 25 | 4,168.52 | 4,158.76 | UP 0.23% |
| DEALS EXECUTED | 5,958 | 5,724 | UP 4.09% |
| VOLUME OF SHARES | 122,041,600 | 88,006,000 | UP 38.67% |
| MARKET CAP (KES Bn) | 2,035.711 | 2,015.605 | |
| MARKET CAP (USD $) | 19.982 | 19.735 | |
| MAIN MARKET P/E | 12.78 | 13.29 |
Average Sector P/E
| Sector | P/E |
| Agriculture | 36.33 |
| Automobiles & Accessories | 108.92 |
| Banking | 7.80 |
| Commercial & Services | -3.23 |
| Construction & Allied | 7.10 |
| Energy & Petroleum | 4.01 |
| Insurance | 8.85 |
| Investment | 7.44 |
| Investment Services | 11.50 |
| Manufacturing & Allied | 32.50 |
| Telecommunication & Technology | 20.31 |
Top Movers (Volumes)
| Counter | Price | Volume (Millions) |
| Safaricom | 16.25 | 49.05 |
| KCB | 40.25 | 13.35 |
| EQUITY | 40.75 | 10.87 |
| Kenya Reinsurance | 21.75 | 7.03 |
| UMEME | 20.25 | 6.71 |
Top Movers (Turnover)
| Counter | Price | Turnover (Millions) |
| EABL | 276.00 | 868.99 |
| SAFARICOM | 16.25 | 797.03 |
| KCB | 40.25 | 537.24 |
| EQUITY | 40.75 | 443.00 |
| Kenya Re | 21.75 | 135.90 |
Note:
- EABL accounted for roughly 24.5% of turnover. EABL currently leads with net foreign outflows. 3 weeks now.
- KCB has also been recording net foreign outflows for the past 6 weeks now.
- Safaricom had the highest net inflows at roughly USD 1.09 million. Safaricom is up by 4.5% w/w and closed at KES 16.25 on Friday.
- Sasini was up 8% this week. So far, it is the fourth best performing counter in 2015.
- Uchumi Supermarket gained a marginal 0.6% this week on local investor trading.
- I&M Holdings was up 1% during the week and was the only bank in the green while National Bank declined the most, down 8.9%
Top 5 Gainers
| Counter | Price | Shares Traded in the week | % Change W/W | % Change YTD |
| Atlas | 1.95 | 1,585,300 | 14.7 | (83.8) |
| Nation Media | 179.00 | 354,000 | 9.8 | (31.9) |
| Kapchorua Tea | 172.00 | 600 | 9.6 | 24.6 |
| Sasini | 18.90 | 209,000 | 8.0 | 47.1 |
| Flame Tree | 6.90 | 2,800 | 7.8 | (15.9) |
- As mentioned before Atlas has become a speculators playing field and has gained 14.7% w/w.
- Nation Media Group gained 9.8% and has been generating foreign investor interest.
Losers
| Counter | Price | Shares Traded in the week | % Change W/W | % Change YTD |
| TransCentury | 7.55 | 80,100 | (21.8) | (61.0) |
| Athi River Mining | 40.00 | 146,100 | (12.1) | (53.5) |
| Eaagads | 20.00 | 448,000 | (9.1) | (52.4) |
| Express | 4.00 | 16,500 | (9.1) | (35.5) |
| NBK | 14.90 | 57,400 | (8.9) | (39.8) |
- TransCentury set a record 52 week low on Thursday at KES 7.65. It closed on Friday at KES 7.55. The share price of TCL has been on a free fall and it is down 61% year to date.
Fixed Income Market
Turnover in the debt market was down by 31.4% to KES 7.587 Billion. Deals executed were 81, this was down by 51.2% w/w. 28 deals were executed on the short term bonds. 41 deals were executed on the long term bonds including infrastructure bonds. 12 deals were executed on the corporate bond arena.
The largest bond traded by value was the 1 yr bond FXD 2/2015/1YR on which 6 deals were executed at an average traded yield of 12.6633% with a total value of KES 4,700,000,000. This comprised roughly 62% of turnover.
The corporate bond arena which is relatively quiet had some activity, this came from the Family Bank Medium Term Note FBKB.BD.19/04/21-0049-13.75 where 10 deals were executed worth KES 210.4 Million.
Market News Of The Week
KenGen
KenGen reported that NSSF offloaded its KES 134m stake. Kenyan WallStreet will embark on a shareholder analysis of KenGen and will publish it on Monday 14th December as part of our weekly company analysis.
Fitch warns Kenya
Carmen Altenkirch (Sovereigns Analyst) said that over the medium term, fiscal and external risks were rising, particularly if there was no decisive fiscal consolidation by its government.
“The longer they delay this, it clearly places additional pressure on debt and could ultimately result in the rating being downgraded,” she said.
In July, Fitch affirmed Kenya’s rating at B+, but cut its outlook to negative from stable.
European Investment Bank
The European Investment Bank (EIB) has signed three credit lines worth 110 million euros ($121.00 million) to support private sector investments across east Africa, the bank’s vice president said on Friday.
The funds will support job creation and economic growth in Kenya, Tanzania, Uganda and Burundi by providing long-term local and foreign currency loans and support investment across a range of sectors, including agriculture.
The loans will be provided through three banks – the African Banking Corporation, NIC Bank and CRDB Bank.
Uchumi Supermarkets
Uchumi managed to secure a short term loan from KCB worth KES 500 Million in order to stock up as the festive season is about kick off.
Kenya Airways
KQ faces competition from other carriers such as Ethiopian Airlines and South African Airways which will threaten its current market share. KQ is still trying to recover from its losses and they need a quick turnaround strategy or else it will inevitably sink further and go into liquidation.
Kenya gets sixth COMESA extension on sugar safeguards
Kenya once again received an another one year extension of safeguards on importation of dutyfree sugar from Common Market for Eastern and Southern Africa (COMESA) countries, giving the country more time to complete reforms in the ailing industry
Express Kenya
CEO Hector Diniz is set to own 71% of the company when his debt owed to his companies is converted into equity subject to approval from Capital Markets Authority.
10th WTO Ministerial conference to be held next week in Kenya
The 10th World Trade Organisation (WTO) Ministerial Conference (MC10) will be held next week from 15th to 18 December 2015 in Kenya’s capital of Nairobi, the first time in Africa. WTO is the sole global international organization with 161 members that deals with the rules of trade between nations. Its main objective is to help producers of goods and services, exporters, and importers conduct their business of trade in global markets fairly.
BOC gases issues profit warning
BOC Gases joined 11 other companies which have so far announced profit warnings in 2015
Ethiopia joins Northern Corridor Integrated Projects
Rwanda hosted the 12th summit of Northern Corridor Integrated Projects (NCIP). In the meeting, Ethiopia left its observer status to become a full member of NCIP.
Kenya receives USD 1.5bn funding for extension of railway from Nairobi to Naivasha
The Government secured a USD 1.5 Billion loan from China to extend the railway from Nairobi to Naivasha. The loan, which will be offered by China Exim Bank, will provide 85% of the financing.
East African Portland Cement
EAPC finally released their FY results and were disappointing. They had an increase of 521% in operating losses, however, EPS was positive and this was attributed largely due to realized gains from sale of land and revaluation gains on their investment property. Cash flows remained negative.
EAPC is clearly struggling operational wise and faces stiff competition in the market.
East African Markets
Uganda
Turnover was up by 188.7% w/w to UGX 7.16 Billion. USE All Share Index gained 2.75% w/w to close at 1,775.10. Volume traded during the week was 21.35 Million shares.
| Counter | Price | Weekly Change |
| BATU | 17263.00 | UP 15.09% |
| BOBU | 155.00 | UNCHANGED |
| DFCU | 980.00 | UNCHANGED |
| NIC | 12.00 | UP 9.09 |
| NVL | 606.00 | UNCHANGED |
| SBU | 32.00 | UNCHANGED |
| UCL | 15.00 | UNCHANGED |
| UMEME | 644.00 | DOWN 0.31 |
Rwanda
RSE Turnover reduced by RWF 1.89 Billion to RWF 0.490 Billion w/w. The RSE All Share Index was down by 0.02% w/w to close at 130.60 points. 1.78 Million Shares were traded during the week.
| Counter | Price | Weekly Change |
| BOK | 280.00 | UNCHANGED |
| BLW | 174.00 | UNCHANGED |
Tanzania
The Dar Es Salaam All Share Index weekly turnover was down by 39.8% to TZS 64.72 Billion w/w. 11.66 Million Shares were traded. DSEI was up by 1.35% w/w to close at 2,388.07 points.
| Counter | Price | Weekly Change |
| ACA | 5.860.00 | UP 0.86% |
| CRDB | 405.00 | UP 1.25% |
| DCB | 570.00 | UNCHANGED |
| MBP | 600.00 | UNCHANGED |
| NMB | 2,650.00 | DOWN 5.02% |
| PAL | 470.00 | UNCHANGED |
| SWIS | 7,360.00 | UNCHANGED |
| TBL | 15,000.00 | DOWN 0.27% |
| TCCL | 2,690.00 | UNCHANGED |
| TCC | 16,100 | UNCHANGED |
| TPCC | 3,000.00 | UNCHANGED |
| TTP | 650.00 | UNCHANGED |
| TOL | 760.00 | UNCHANGED |
Global Markets
Europe
European stocks were down further, the Stoxx Europe 600 Index was down by 3.3% for the week. Federal Reserve rate decision which is due to be made later this month has been the catalyst for the decline.
Asia
Asian stocks took a hit, with the biggest weekly drop since September. Investors are waiting for China’s retail sales and production data.
US
Dow Jones Industrial Average gained 0.5% to 17,574.75
S&P gained 0.2% to 2,052.23
