NSE sees week of mixed reactions amid continued Covid-19 repercussions

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The NSE on Week 20 closed in the red comparatively on Friday as global shares had another downturn worsening with the Covid-19 crisis.

Kenya’s index of blue-chip companies closed on May 15 down with over four points lost amid the pandemic focus. Again, this saw the markets being top laggard plunging the All-Share Index over the day’s week except on closing.

On Monday, the Nairobi-Bourse had a low start with the NSE All-Share Index starting on a lowly 140.65 points. Already the week before the market had closed on 140.87 points and this was a loss of -0.16% already at the count.

The indices day run was also present at the day’s trading of the 20-Share Index which saw a market capitalization on a positive note. The week’s start to activities would have the 20-Share Index trading to hit highs of 2,053.95 up from 2,034.71 earlier.

Source: Nairobi Securities Exchange

Equity statistics

The biggest earner to the week’s start would go to the bourse investment services which saw most activities out of its 4,500 shares. As the NSE Plc, the bourse would have a Monday close of plus 7.96% on its share value to trade at highs of Ksh. 9.76. The national carrier, KQ would hit off the start of the week as the day top gainer. This is despite no near-sight end to the Covid-19 lockdown that have had the carrier being the first and a continuous casualty of the pandemic. Monday’s closing would have Kenya Airways adjust to the global pandemic uncertainty to become the day’s top value earner on the share price at Kshs 1.87.

However, the bourse midweek performs saw things take a turn for the worse with the NSE market continuing shedding points amid the turmoil.

On Tuesday, statistics would put all the Indices on the red at closing with the FTSE NSE Kenya 25 Index taking the biggest loss home. While it stood only -1.06% to land at 186.77 it was a 2 point drop within a day.

The NSE 20-Share Index was also not spared from the midweek losses despite a week of recovery ending May 11.

Source: MyStock Live

A negative change of 0.73% from the previous day’s trading meant investors had now lost 140.96 billion within the day’s trading.

The losses were further evident with the NSE All-Share Index also joining in with a value loss of 0.87% off the mark. At 139.42 points, the bourse’s All-Share Index stood at a day’s trading loss of a point from the last activities.

Trading on the next day would exhibit less confidence with the NSE still tanking further to leave investors shedding off stocks. Loss in the values was in double digits figures with some shares losing out as much as 10% with the day’s trading. NCBA Group was on the losing end with the banking and commercial firm losing Ksh 3 of its shares to close trading at Ksh. 28.80.

Friday Market: NSE closes on a positive

Closing day Friday saw the NSE market had a positive turn which was a mixed reaction to the week plummeting figures.

Starting, the NSE All-Share Market capitalization made slight gains to cushion the midweek downturn of trading. The market’s points would improve to land off at 135.33 points, a gain from the previous low of 134.19. Slightly of the positive mark also was the 20-Share and 25-Share Index which saw positive value gains of 0.27% and 0.36% respectively.

Source: Nairobi Securities Exchange

Interestingly, Commercial and services stocks continued to impress throughout with Friday being most evident. On closing day, some of the day’s top garners would feature from the sector with Kenya Airways at a value gain of 9.84% to trade at Ksh. 2.01 per share. Eveready East Africa (8.54%), Standard Group (10.00%), Nation Media (5.41%) and Sameer Africa (5.81%) also cut the shares closing on a positive.

Winners and losers in double digits

Top among the dreadful performers was NCBA Group Plc The commercial lender saw the week’s top double-digit value loss by shedding off over 10% from its share price to trade at Ksh. 27.20 per share. Counterpart Equity Group was also featuring among the week’s biggest losers by coming in second with the most value loss of the week at -13.92% to close of price share at Ksh. 33.70. Likewise, Insurance giant, Britam made the top three of week 20 losers with the firm on dropping cents of its value. Still, the mere drop from Ksh. 6.36 to Ksh. 6.02 was a significant 5.35% off its share value.

On the flip-side, Kenya Airways continued its resurgence with another week of gains to make the top firm with most gains in week 20. The national carrier had a cumulative to hit +58.27% gain of the share price of Ksh 2.01 on closing.

Source: MyStock Live

Similar firms in the carrier’s sector also made the cut with Sameer featuring despite slow gains at the week’s end. Despite efforts in closing up shop the Tyre manufacturer still saw the week’s second-best gains at +20.85% gain on its Ksh. 2 per share price. Media House Standard Group and Kapchorua Tea were also part of the week’s impressive gains at value additions of 10% and 12.86% respectively.

Kenya’s debt wound: Okay but barely

Already years of spending against lower revenues has left the government with as shortfall withing its external financing gap. The IMF puts the figures at $2.1 billion to bridge the gap, bring shilling stability and for a balance of payment.

However, amid calls of debt suspension from the G20 initiative, the government took a U-turn to not seek one. Instead, the finance minister held the terms as too restrictive.

Already Kenya’s growing debt stock of public debt has grown by 3.7 times to make up 62% of the country’s nominal GDP. Further nonrestrictive borrowing would put the National treasury at a higher annual fiscal deficit of more than three times up from Ksh 300 billion at the 13/14 Financial year.

Source: The National Treasury

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