Equity Market Commentary
The market closed the week on a bearish note, with NASI, N10, NSE 20, and NSE 25 declining by 3.2%w/w, 4.3%w/w, 1.1%w/w, and 3.7%w/w, respectively. Market activity declined to USD 17.35m (-6.3%w/w). Safaricom dominated market activity accounting for 51.7% of the week’s turnover. The counter’s price function eased by 9.0%w/w to KES 17.20.
Among the top-traded banking stocks, Stanbic edged up 0.7%w/w to KES 139.00 whereas KCB Group and Equity Group tapered by 6.7%w/w and 3.1%w/w to KES 42.75 and KES 47.20, respectively.
EABL weakened by 6.6%w/w to KES 180.50, with the share price declining by 5.5% on 31st January 2025 following the release of its 1H25 financial results.
E.A Cables was the week’s best-performing top mover, rallying by 55.4%w/w to close at KES 2.47. Similarly, Kenya Power gained 18.9% to close at KES 7.56, partly buoyed by bullish investor sentiments following its 1H25 financial results. The power distributor reported a 3.1x jump in earnings per share (EPS) to KES 5.11, with its Board of Directors recommending a KES 0.20 interim dividend. The book closure is pencilled for 28th February 2025.
On the other hand, Africa Mega Agricorp (formerly Kenya Orchards Limited) declined by 18.90%w/w to close at KES 56.75 – a 14- week low. Kenya Orchard (KOL) had last year announced a notice of intention by Africa Mega Agriculture Centre Limited (AMAC) to acquire up to 10,863,537 ordinary shares in KOL by way of a private transaction. The firm’s shareholders approved the transaction during its EGM on 19th August 2024, with AMAC now directly controlling up to 84.423% of KOL’s issued share capital.
Foreign investors remained bearish, with net outflows of USD 395.7m. Stanbic led the buying charge while Safaricom led the selling charge. Foreign investor participation rose to 64.9% from 45.0% in the prior week.
Expected in the week; Wednesday, 5th February 2025 – CBK MPC Meeting & January 2025 Stanbic Bank PMI.
