KENYAN MARKET
The Week in Numbers
Equity Market
| Description | Current Week | Last Week | % Change |
| NSE 20 | 3,839.29 | 3,940.42 | DOWN 2.57% |
| NASI | 141.86 | 145.24 | DOWN 2.33% |
| NSE 25 | 4045.93 | 4147.08 | DOWN 2.44% |
| DEALS EXECUTED | 6,688 | – | – |
| VOLUME OF SHARES | 2,840,070,101 | – | – |
| MARKET CAP (KES Bn) | 1,995.444 | – | – |
| MARKET CAP (USD $) | 19.496 | – | – |
| MAIN MARKET P/E | 12.52 | – | – |
Kenyan Equities are currently in a bear market, we are below the 4,000 level of the NSE 20 Index. Have a look at the NSE 20 Index 5 year chart below as we demonstrate the current situation in the market.
Average Sector P/E
| Sector | P/E |
| Agriculture | 18.54 |
| Automobiles & Accessories | -13.17 |
| Banking | 7.59 |
| Commercial & Services | -3.21 |
| Construction & Allied | 6.92 |
| Energy & Petroleum | 4.11 |
| Insurance | 8.16 |
| Investment | 7.78 |
| Investment Services | 11.50 |
| Manufacturing & Allied | 31.74 |
| Telecommunication & Technology | 20.13 |
Top Movers (Turnover)
| Counter | Price | Turnover (USD) |
| EABL | 265.00 | 7,228,000 |
| EQUITY | 40.00 | 5,225,000 |
| SAFARICOM | 16.10 | 4,106,000 |
| KCB | 39.75 | 3,420,000 |
| BAMBURI | 172.00 | 989,000 |
Note:
- •Foreign Investors were net buyers for the consecutive 2nd week.
- •EABL had net foreign outflows and foreign investors have been on the net sell side for over the past 6 weeks
- •Bamburi experienced foreign investors’ activity. We refer you to a Cement Valuation Report done by Standard Investment Bank released during the week.
Gainers
| Counter | Price | Shares Traded in the week | % Change W/W | % Change YTD |
| Longhorn | 6.75 | 260,800 | 29.8 | 50.0 |
| Home Afrika | 2.00 | 3,789,200 | 17.6 | (23.1) |
| Crown Berger | 63.00 | 41,700 | 14.5 | 3.3 |
| Kenol Kobil | 9.30 | 2,539,300 | 4.5 | (3.1) |
| Equity Bank | 40.00 | 13,596,100 | 3.9 | – |
- •As mentioned before Home Afrika has become a speculators playing field and has gained 17.6% week on week. We max out Home Afrika’s chart since listing to get an overall picture of the situation on this counter. It has issued profit warnings for 2 consecutive years.
Losers
| Counter | Price | Shares Traded in the week | % Change W/W | % Change YTD |
| E.A Portland | 43.00 | 1,000 | (14.0) | (8.0) |
| Unga Group | 30.50 | 252,100 | (12.9) | (9.6) |
| Standard Group | 27.50 | 5,700 | (11.3) | (1.8) |
| Britam | 11.70 | 1,976,600 | (10.0) | (10.0) |
| Kenya Power | 11.75 | 843,100 | (8.9) | (11.0) |
- •This week Britam set a new 12 month low during Friday’s trading session at KES 11.50 per share. Have a look at that the Britam chart below since 2015 to date!!! Its down by 60% down.
- •Kenya Power experienced foreign investor selling
Fixed Income Market
The debt market experienced increase in turnover from the previous week. Turnover this week stood at KES 10.073Bn compared to KES 476.990Mn the previous week. 57 Deals were executed.
73% of activity in the bond market was heavily concentrated on the short term one year bond FXD 2/2015/1Yr which had a total value traded worth KES 7.364Bn with an average traded yield of 13.9494%. 23 traded were executed on this bond. This bond matures in 24th October 2016 and has a coupon rate of 22.954%
Market News
TransCentury
Transcentury CEO Gachao Kiuna ‘Resigns’ as CEO & Director of TCL. Nganga Njiinu takes charge as Acting CEO he was the head of corporate finance at TransCentury.
Diamond Trust Bank
Diamond Trust Bank has opened Machakos Branch as it seeks to increase its footprint in the local and regional market.
DTB also has a presence in Uganda, Tanzania, and Burundi with branches spread across the region.
Centum
Old Mutual’s property division, Old Mutual Property (OMP) has invested Kenya Shillings 6.4 Billion in Two Rivers Lifestyle Centre (TRLC), the holding company for the Two Rivers Mall, in a landmark deal that was arranged solely by Nabo Capital. This transaction implies a total asset valuation for the mall of approximately KES 23 Billion. OMP has made the investment via a subscription for a 10% shareholding of TRLC in newly issued stock and a loan that is convertible into an additional 40% shareholding, subject to the Competition Authority’s approval. The transaction will see OMP ultimately hold a 50% stake in TRLC.
“This deal is a very important affirmation of the investment-grade quality of the Two Rivers Mall. A private transaction of this magnitude by a reputable international investor of OMP’s stature is also a firm vote of confidence in Kenya and the region as an investment destination.” stated Pius Muchiri, Nabo Capital Managing Director.
Global Markets
For the first time in 12 years, oil is below $30 a barrel. China is struggling to prop up its slowing economy and calm its volatile stock market. For the moment, the bears have the upper hand — and January is only half over. As the Dow Jones Industrial Average sank 391 points on Friday, investors the world over seemed to be groping for any good news. While most money managers kept their cool, few offered assurances the U.S. market would bounce back soon, as it did after a similar bout of turmoil last August.
The selling has been intense, and European stocks officially entered bear market territory on Friday when the Stoxx Europe 600 Index closed down 20 percent from its record high in April. Now global equities have lost more than $14 trillion, or 20 percent, since June. The pace of the drop has been so fast it’s unraveled about half of the rally since a low in 2011. Investors have fled into the U.S. Treasury market, and pushed the yield on the 10-year note below 2 percent for the first time in months.
The triggers for the upheaval are familiar — China and oil — and the anxiety is the usual one.
“It comes down to one basic fear, which is the global economy,” said Russ Koesterich, global chief investment strategist for BlackRock Inc., which manages $4.5 trillion. “What people are afraid of is this isn’t investors overreacting, but reflects a fundamental deterioration in growth.”
