KENYAN MARKET
The Week in Numbers
Equity Market
| Description | Current Week | Last Week | % Change |
| NSE 20 | 3,747.40 | 3,839.29 | 2.39% |
| NASI | 136.47 | 141.86 | 3.8% |
| NSE 25 | 3,912.12 | 4045.93 | 3.31% |
| DEALS EXECUTED | 7,232 | 6,688 | 8.13% |
| VOLUME OF SHARES | 119,580,300 | 2,840,070,101 | 95.79% |
| MARKET CAP (KES Bn) | 1,921.614 | 1,995.444 | DOWN 73.83Bn |
| MARKET CAP (USD $) | 18.779 | 19.496 | DOWN 0.717Bn |
| MAIN MARKET P/E | 11.98 | 12.52 |
Data Source: NSE
Kenyan Equities continued the downward trend we are deeply in 3 year lows. This means we are experiencing some 3 year historic price levels. Using the Relative Strength Index gives us a value of 26.26, this is an oversold indicator meaning that if you trade on technicals this is a strong buy indicator as it falls below the 30 mark. We believe some bargains are out there in the Kenyan Blue Chip companies.
Source: Bloomberg
Average Sector P/E
| Sector | P/E |
| Agriculture | 17.38 |
| Automobiles & Accessories | -13.47 |
| Banking | 7.36 |
| Commercial & Services | -3.11 |
| Construction & Allied | 6.95 |
| Energy & Petroleum | 3.85 |
| Insurance | 8.04 |
| Investment | 7.64 |
| Investment Services | 11.15 |
| Manufacturing & Allied | 28.69 |
| Telecommunication & Technology | 18.88 |
Source: NSE
Top Movers (Turnover)
| Counter | Price | Turnover (USD) |
| EABL | 255.00 | 6,880,000 |
| SCOM | 15.10 | 6,146,000 |
| KCB | 38.50 | 5,163,000 |
| EQUITY | 38.50 | 4,161,000 |
| CO-OP | 16.50 | 2,745,000 |
Source: NSE, Standard Investment Bank (SIB)
Note:
- According to SIB the Banking Sector encountered foreign investor inflows especially on CFC Stanbic Bank, Equity Group and Diamond Trust Bank. They also mentioned KCB continued to experience net foreign outflows for 12 weeks now. KCB touched a 52 week low of KES 37.00 on Wednesday 20th January 2016. Have a look at the chart below.
Source: Financial Times
Gainers
| Counter | Price | Shares Traded in the week | % Change W/W | % Change YTD |
| Sasini | 20.50 | 150,500 | 17.5 | 4.9 |
| Unga Group | 35.75 | 12,900 | 17.2 | 5.9 |
| E.A. Portland Cem. | 47.75 | 2,400 | 11.0 | 2.1 |
| Mumias | 1.75 | 2,659,000 | 9.4 | 9.4 |
| Express Kenya | 4.85 | 600 | 6.6 | 7.8 |
Source: (NSE, Kenyan WallStreet)
Losers
| Counter | Price | Shares Traded in the week | % Change W/W | % Change YTD |
| Williamson Tea | 163.00 | 9,800 | (30.3) | (57.6) |
| KenGen | 5.45 | 10,184,500 | (16.8) | (23.2) |
| Longhorn | 5.70 | 184,500 | (15.6) | 26.7 |
| Atlas | 1.75 | 661,000 | (14.6) | (16.7) |
| Uchumi | 8.00 | 50,900 | (11.1) | (26.9) |
Source: (NSE, Kenyan WallStreet)
Fixed Income Market
Turnover in the debt market reduced this week by almost KES 5.19Bn to stand at KES 4.89Bn this week. 39 deals were executed. The most traded bond by turnover was the One Year Bond FXD 2/2015/1Yr which had a turnover of KES 1.41Bn and had an average traded yield of 13.1404%
Currencies
The Kenyan Shilling was stable against the dollar and was between the ranges 102.250 – 102.500. In an analyst report done by Renaissance Capital, they mentioned that the shilling “can remain strong for years to come and they expect only modest depreciation.”
Market News
Barclays Bank Investment Unit given access to NSE Trading Platform
CBK Retains Key lending rate at 11.5%
Kenya Airways CFO Alex Mbugua Sent flying, two other directors exit
Global Markets
The week experienced massive turmoil in the markets. Sell off in equities continued and approximated to have wiped out $7.7 trillion in the markets. In approaching the end of the week Draghi calmed the markets causing a two day rally as he signaled further stimulus.
Putting Equity Markets in perspective have a look at this chart taken during the week. Only 7 equity markets are in the green YTD out of the 93 globally.
Source: Bloomberg
On currencies the Russian Ruble fell to a record low.
Source: Investing.com
The Japanese Yen which a number of traders and investment banks are calling it the trade of the year is seeming to become true. Morgan Stanley expects the Yen to strengthen to 115 to the dollar by end 2016. So far only the Mozambique Metical has risen against the Yen in 2016.
Source: Bloomberg
Sources: (NSE, Kenyan Wall Street, Investing.com, Bloomberg, Financial Times, Standard Investment Bank, Renaissance Capital)
