Equity market commentary
Wiping out gains made this year, the NASI, NSE 20 and NSE 25 indices were down 8%w/w (-7.4% YTD), 7.1%w/w (-20.4% YTD) and 10.1%w/w (-15.3% YTD) respectively. Equity turnover slumped 30.3%w/w to USD 26.3m on reduced foreign investor trading. Their participation declined to 57.9% compared to 68.1% in the previous week. Though down 27.3%w/w, foreign investors recorded net inflows for the sixth consecutive week, at USD 11.4m.
Safaricom, which accounts for 41% of total market cap, maintained its top mover position accounting for 48.8% of market activity. After touching an all-time high the previous week, the telco was down 7.5%w/w. Safaricom and BAT had the highest foreign net inflows of USD 8.5m and USD 879.6k respectively. Up 20.6% YTD, Safaricom along with BAT (+9.6% YTD) are the only large caps to boast of positive returns. KenolKobil joined the top moversí list on renewed foreign investor demand. Though up just 0.4%w/w, the oil marketer was the only top mover to post a gain.
Following the presidential assent to the interest capping bill, all banks closed in the red and dominated the top losersí list after most of them fell by about 10% for two straight sessions. I&M Holdings recorded the highest foreign net outflows (USD 190k) with Equity Group coming at a distant second (USD 69k). Up 8.3% YTD, StanChart is the only bank to post a gain. The banking sector is down 24.3% YTD on market cap weighted basis.
Shinzo Abe arrives in Kenya for TICAD VI conference, House throws out petition to investigate Safaricom on tenders, China Wu Yi to set up a KES 10bn building materials plant, supermarket & research centre, License seekers for drone use hit 1,000 as KCAA finalizes regulations.
Equity Group 1H16 EPS up 17.6%y/y to KES 2.67, DTB 1H16 EPS unchanged at KES 13.95, Bamburi Cement 1H16EPS down 8%y/y to KES 7.15, ARM narrows 1H16 loss per share by 25%y/y to KES 0.54, Limuru Tea 1H16 EPS up 20.1%y/y to KES 3.64, NSE 1H16 EPS down 54.1%y/y to KES 0.32, Kenya Airways starts airport shuttle service, TPS Serena 1H16 loss per share narrows 30.7%y/y to KES 0.43, Britam 1H16 EPS rises 187.5%y/y to KES 0.92, Kenya Power and Toshiba sign MoU in support of efforts to reduce electricity distribution losses.
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