The equities market turnover yesterday declined marginally to Ksh777 million from the previous session’s Ksh799 million, the number of shares traded stood at 17.5M against 29M posted the previous session. The banking sector had shares worth Ksh381M transacted which accounted for 49.07% of the day’s traded value.
Equity Group Holdings actively moved 3M shares valued at Ksh161M at between Ksh50.50 and Ksh53.75. KCB Group moved 2.7M shares valued at Ksh128M and closed at Ksh47.20. Stanbic Holdings was up 1.10% to Ksh92, moving 711,000 shares valued at Ksh65M.
The Commercial & Services sector had shares worth Ksh3.7M transacted, representing 0.48% of the day’s traded value. Nairobi Business Ventures closed 6.09% higher to Ksh7.32 on a volume of 365,000 shares valued at Ksh2.6M.
The Manufacturing & Allied sector had shares worth Ksh73M traded accounting for 9.37% of the day’s traded value. East African Breweries moved 415,000 shares worth Ksh72M at between Ksh173.50 and Ksh174.00. In telecommunication, Safaricom was the day’s main feature with 7M shares valued at Ksh314M changing hands at between Ksh41.80 and Ksh42.40, accounting for 40.49% of the day’s traded value.
Today we analyse four key shares at the NSE and give investors direction on them. The analysis has been done by Kingdom Securities.
SAFARICOM PLC – Buy
The telecommunications counter continues to flourish both in its innovative power and on its overall share price. Its flexibility to change on customer service and product delivery, has seen the company remain strong on customer retention while growing its customer base.
The counter’s product development remains a key focus in the Kenyan market as it expands and replicate the same in Ethiopia. As the economy recovers, we expect continued growth in M-Pesa revenue which is a key contributor to its topline revenue. Therefore, we recommend both a buy on the counter focusing on capital gains and dividends, having gained 25.0% YTD and 10.3% in the last three months to the current price of Ksh42.80.
EQUITY GROUP PLC – Long-term Buy
The lender’s price is currently trading at Ksh48.35, having gained 33.4% from Ksh36.25 YTD. The bank reinforced its capital by retaining profits and withholding dividends in the FY 2020. The bank posted a 63.3% growth in PBT for Q1 2021 which saw its share price soar steadily. We anticipate positive results in the H1 2021 which we expect to push its share price further on an upward trend. It is in line with all these we recommend an entry on the counter to gain on dividends and capital gains for short term investors.
KCB GROUP PLC – Long-Term BUY
Currently trading at Ksh44.80 form a low of Ksh35.70 witnessed in early February. As at the close of Q1 2021, the counter was trading at Ksh41.30 closing Q2 2021 at Ksh42.65, gaining 5.0%. As we approach release of Q2 2021 results, we expect the lender’s share price to continue to appreciate, based on its strong brand and resilient performance even amidst the pandemic. It is in line with this that we recommend an entry on the counter focusing on capital gains and dividends for long-term investors.
NATION MEDIA GROUP PLC – SELL
The buy-back offer pushed the counter’s price to a maximum of Ksh25 and continues until a 10% acquisition target is achieved on or before 24th September 2021. We advise those who would like to exit to take advantage of the buyback price.