Minor gains for the NSE with Share indices on the uptick

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It was another week of slight gains for the Nairobi bourse with the stock market seeing out a positive turn. On closing Friday, the NSE saw a turn for the better in particular with the shares indices where investors were most active. Staring off, the All-Share Index outperformed other indices by gaining the most. As per the data, the NASI hit 140.39 points to earn a +1.25% in value and 1.72 points in total. Despite the minor gain, the overall equity turnover was of much interest. Total equity deals on Friday stood at 1011, with the shares traded equally off the impressive NSE trading at over 22,477,500 shares exchanged. Also, the market capitalization would resonate with the bourse positive performance by topping off at 2,145.80 billion on the week’s closing day.

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Source; Nairobi Securities Exchange

Other shares indices were also on the winning end despite resonating with the overall slow pace of gains. In particular, the NSE 20 Share Index took home the most substantial turnover despite its value of 0.54%. Closing week 21’s trading at 2,104.88 places the 20-Share Index at a +10.87-value addition from the previous trading day. As it stands, this is a subtle sign for the improvement of NSE’s top 20 best-performing counter for the week.

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Source: Nairobi Securities Exchange

Equity statistics on the week

Amid the Covid-19 pandemic, the economy is looking set to open considering week 21 marks the second uptick in equity gains. Totaling the week’s top gainers was the national carrier Kenya Airways KQ which has seen a surge in value addition amid crisis in the aviation industry. Friday saw the most activity with the airline taking home the top gainer during the NSE week closing. As of May 22, KQ was the top gainer with a +9.76% value surge to seal the day at Ksh 3.15 from the day’s previous of Ksh 2.87 per share. In total, KQ also continued the trend by having the week’s most significant gain at an impressive increase of +56.72 in its value as an accumulation over the week to land at Friday’s closing price.

Tire manufacturer, Sameer Africa, was also of interest over the week considering it continued making similar gain trends to Kenya Airways. Calls of the closing shop have not deterred the firm’s equity investors with the NSE trading week bearing witness. The statistics have Sameer Africa as the second most top gainer, with a 10% gain from last week’s trading price. Investor push has risen the share price of the brand to land at the latest rate of Ksh 2.94.

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Source: MyStocks Live

However, week 21 had plenty of activities on the uptick considering Kenya Airways, and Sameer

were not the only positive gainers. Excepting the two, another 28 equity shares had positive change performance on NSE.

In particular, the shares to land in this week’s double-digit category would feature another three firms on our market watch. Sasini, Nairobi Ventures, and Liberty Kenya Holdings made positive strides of +11.11%, +11.11%, and +10.67 % gains respectively on their share prices for the week. Of interest was Nairobi Business Ventures that made a comeback this week after shaving off a considerate value of its share price to trade at a previous average of Ksh. 0.5.

Closing off, the unexhausted gainers’ list are Britam Holdings, Umeme, and TransCentury Ltd, which all gained an average of over +9% off their value prices. Umeme was in the reach of attracting investor attention with the power firm indicating a value gain from May 11 till the closing date. As per the statistics, the equity share’s uptick for the firm stands at +9.73% to have the share trading at a new two-week high of Ksh 7.44.

On the flip side, the week’s losing end saw plenty of activity, with 23 equity shares dropping in value throughout the trading. Week 21 most loss went to BK Group Plc, which had value depreciation in double digits of -18.18% for the commercial banker to close at Ksh. 18.00 per share. This was another week that was already on a downturn since the last share recording of May 18.

Stanlib-Fahari would close off as the second top loser at the end of the double-digit despite a closing day that saw +9.63% value gain in its 625 million shares. The realtor firm had already lost 12% off its value to seal trading at Ksh 6.60 a share.

The top five losers list would be further compiled with TPS Eastern Africa, Crown Berger Ltd, and BOC Kenya Plc. In comparison, the trio firms would end up losing their value that stood at -9.47%, -9.09%, -and -8.98% respective to their share values.

Forex Reserves and T-bills see climbs

On the forex reserves, the figures over the week hit $8.532 billion(Sh913 billion) to almost equal January’s high figures of $8.543 billion. The increased value comes after CBK was given a $739 million financial push from the International Monetary Fund(IMF). As a result, the CBK expects the economic support loan to help strengthen the shilling and foreign exchange reserves for import cover.

T-Bills also gained traction over the week, with investors oversubscribing to the 91-Day offer. As per the standings, bidding data shows a 100.37 percent performance on the T-bill will investors bidding Sh24.09 billion over the expected backdrop of Sh24 billion by the CBK.

The uptake was significant, considering the government’s increase in borrowing to meet the uncertainties of the pandemic.

Banking sector on the positive

Cooperative Bank took action to release its Growth Report to indicate their net profit of the first quarter. The commercial lender recorded gains of Ksh3.6 billion, a 12.7% growth from a similar period last year.

KCB Group Plc was also on the radar with Wednesday seeing the banker reporting its first-quarter profit after tax. As per the period ended March, KCB saw an increase of +8% with Ksh6.3 billion as the profit gains.

Similarly, NCBA and Family Bank had also made their net profit reports public, indicating a 20% and 85% increase in value that stand at Ksh. 1.63 billion and Ksh 293 million, respectively.


About Author

Anthony Kiratu is the Founder of Finsolutions. He is a financial analyst with over 5 years experience in research, investment advisory, valuation and financial modelling. Anthony is a member of the Institute of Certified Investment and Financial Analysts and Institute of Certified Public Accountants of Kenya. He is passionate about development of African Capital Markets through training of investors and dissemination of information for sound financial and investment decision making process. He is also a part-time lecturer in the Certified Investment and Financial Analyst course in the subjects of International Finance, Portfolio Management, Equity Investment Analysis, and Fixed Income Securities. Email: anthony@finsolutions.co.ke Contact: +254 780216631

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