KENYAN MARKET
The Week in Numbers
Equity Market
Valuations improved this week with an increase in the market cap by KES 64.459Bn. The benchmark NSE 20 index managed to close the week at 3,833.07 points, higher by 1.59% compared to the previous week. Below is a 1 month chart of the NSE 20 Index.
Source: Bloomberg
Performance of the NSE 20 Share Index since 1998
We maxed out NSE 20 share Index performance since 1998 and as you can see,the current dips were last spotted in;
-Mid 2012
-Mid 2011
-Early 2010
-The second quarter of 2008
-Early2005
Average Sector P/E
| Sector | P/E |
| Agriculture | 16.15 |
| Automobiles & Accessories | -13.61 |
| Banking | 7.51 |
| Commercial & Services | -3.17 |
| Construction & Allied | 6.90 |
| Energy & Petroleum | 3.87 |
| Insurance | 8.01 |
| Investment | 7.50 |
| Investment Services | 11.03 |
| Manufacturing & Allied | 30.05 |
| Telecommunication & Technology | 20.25 |
Source: NSE
Top Movers (Turnover)
| Counter | Price | Turnover (USD) Millions |
| KCB | 40.00 | 9.9 |
| SAFARICOM | 16.20 | 6.7 |
| EABL | 273.00 | 5.2 |
| EQUITY GROUP | 39.00 | 3.8 |
| ARM CEMENT | 33.00 | 1.2 |
Source: NSE, Kenyan Wall Street
At Ksh 1.2 Billion, net foreign inflows recorded were the highest in four and a half months.
Foreign investors were net buyers in KCB and EABL. EABL announced its Half Year results in the previous week and our guess is that foreign investors would wish to lock in on the KES 2.00 dividend declared which is an increase of 33% compared to a similar period the previous year.
Foreign investors were net sellers in Barclays Bank of Kenya. According to a research note by Bernstein cited in Bloomberg, it is resonated clearly that Barclays Plc the parent company should do away with Barclays Africa Group. It is mentioned that “the Africa business has absolutely no synergy whatsoever with the rest of the bank.” In the note it was asked ‘where should Barclays be in 2020?’ They answer by saying, ‘A pure-play U.K retail and commercial franchise with the best technology platform in Europe, with Africa gone and the U.S. investment bank carved out.” Barclays Africa owns 68.5% of Barclays Bank of Kenya, from what it seems there is external pressure for Barclays to do something about their subsidiaries in Africa.Also note that Barclays Kenya is the second biggest Barclays Africa subsdiary in terms of customer numbers.
We will keenly monitor the situation as events unfold.
Top Movers (Volume)
| Counter | Shares Traded |
| SAFARICOM | 42,216,900 |
| KCB | 26,162,400 |
| EQUITY | 9,806,700 |
| BARCLAYS BANK | 4,813,100 |
| ARM CEMENT | 3,804,600 |
Source: NSE, Kenyan Wall Street
Safaricom Limited traded 42 million shares during the week making it the most liquid counter in the week. We extracted a 1 year Safaricom chart. Safaricom has been volatile, question is can you ride the volatility?
Source: Financial Times
Gainers
Losers
Fixed Income Market
Turnover in the debt market reduced by 34.7% to stand at KES 4.023Bn however, number of deals increased from 74 the previous week to stand at 120 deals this week.
Notable high volume trades were on the IFB 1/2015/9Yr with a total value of KES 976.45Mn. 20 deals were executed in the week. Average traded yield was 14.1551%.
T-Bills
From the Table below, we can see that the Average interest rate for the 364-Day T-Bill fell for the second week in a row.
364-Day
182-Day T-Bill
While the average interest rate for the 182-Day T-Bill fell for the first time in 2016
The current yield curve is somewhat inverted which presents some interesting opportunities. Have a look at the official NSE Yield Curve below:
Source: NSE
Currencies
The Kenya Shilling has been steady hovering around the 102 level to the dollar.
Source Investing.com
Market News
NSE Top Investor Joel Kibe, kills guard in accident
Kenya’s Most Promising Stocks of 2016
Kenya Police Launch Manhunt for Uber taxi attackers
NSE to introduce platform for trading in carbon credits
World Bank to release annual report at IHub
Foreign Investors Emerge Net Buyers in January
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