NSE Market Report 4/12/2015
Turnover on the bourse was up by nearly 50% to KES 747.922 Million compared to the previous day. All share Index gained a slight 0.03 points to close at 143.29 points. On the other hand NSE 20 Index went down by 3.85 points to close at 3,990.64 points. A total of 19,836,500 shares were traded. Market Capitalization was 2,015.604 Billion.
Gainers
| Counter | Price | % Change |
| ADSS | 1.75 | 9.38 |
| NBK | 16.35 | 9.00 |
| XPRS | 4.40 | 7.32 |
| UMME | 20.00 | 6.38 |
| KENO | 8.50 | 5.59 |
Losers
| Counter | Price | % Change |
| NIC | 42.00 | 2.33 |
| CFCI | 19.50 | 2.26 |
| SASN | 17.50 | 2.23 |
| ARM | 45.00 | 2.17 |
| BRIT | 14.50 | 1.69 |
Movers
| Counter | Volume | % of Volume Traded | Market Cap. |
| SCOM | 8.47M | 42.7 | 625.02B |
| EQTY | 4.78M | 24.1 | 155.66B |
| BBK | 1.17M | 5.9 | 71.42B |
| EABL | 1.05M | 5.3 | 218.25B |
| KNRE | 0.814M | 4.1 | 15.75B |
Market News
Atlas Development and Support Services
Atlas gained 9.38% to close at KES 1.75. 56,500 shares were traded. Atlas announced earlier during the week that it was liquidating its Kenyan subsidiaries due to tough market conditions. Liquidation process might take 6 months.
It further announced today that it was laying off nearly 750 staff as part of its restructuring program to cut costs.
This is a good starting point and Atlas should focus on their profitable divisions, we believe that going lean is the way forward in tough operating times. Bold and hard decisions have to be made.
Fahari I-REIT
The NSE held a ceremony today 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 Fahari I-Reit had a turnover of KES 2,579,325. 26 deals were executed at an average price of KES 25.00.
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
SCOM accounted for 42.7% of today’s volume. It closed at KES 15.55. 8,471,900 shares were traded.
Safaricom Ltd is at the bleeding heart of innovation, it 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 which 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.
Interestingly Morgan Stanley a leading global financial services firm has an interest in Safaricom and Kenyan WallStreet speculates that they have a stake in SCOM as they are one of the principal analysts who cover the counter. Note that Morgan Stanley was involved in Safaricom’s 2008 IPO as a transaction advisor.
The table below shows Safaricom’s Analysts and their contacts.
