Weekly Market Wrap Up; 22nd – 26th August 2016
Turnover at the Nairobi Securities Exchange declined to Ksh 2.6 billion on a volume of 125 Million shares compared to Ksh 3.8 billion on a volume of 159 Million shares posted the previous week.
The NSE 20 Share Index dropped by a massive 245.94 points ( 7.10%) during the week to stand at 3216.62 points, almost hitting a five year low. Nairobi All share index lost 11.78 points (8.03%) to stand at 134.97.
READ; Nairobi Securities Exchange Lost Ksh 106 Billion In a Day!
Banking Sector Troubles
The drop in market performance was mainly attributed to the Banking sector as all the listed banks plunged by almost 10% for two straight trading sessions following the presidential assent to the bill to cap bank interest rates. KCB Group closed the week at a fresh Four Year low of Ksh.27 while Co-op bank sharply declined by 23.40% to settle at a three year low of Ksh 10.80. Both Coop & KCB have shed about 40% of their value at the NSE over the last one year as shown below.
On the hand, Equity Bank fell by a massive 21.85% to close at a new 44 month low of Ksh.29.50.
Other Interesting Movements
During the week, we spotted lots of activity on Scangroup counter with over 3.8Million shares exchanging hands at between Ksh 16 and Ksh 16.80 with foreign investors accounting for a significant activity.
KenolKobil touched a 12-month high of Kes.12.00 but retreated to close the week at Ksh.11.40 on a volume of 14Million shares. Mumias Sugar moved 1Million shares and closed at an all time low of Kes.1.15.
The mother and father of NSE, Safaricom was the week’s biggest mover with 62.9Million shares changing hands at between Ksh 19.15 and Ksh 21.75. This accounted for 50.31% of the weeks traded volume. The telco’s market cap ended at Ksh 777.6 Billion versus that of all the listed bank’s combined of Ksh 475 Billion.
In the coming week, Kenya Re will announce its half year results on 30 August and EABL will on 31st close its books for the payment of a Final dividend of KES 5.50.
