MARKETS

Investors Hope New Year Will Lift NSE Stocks

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Stock prices at the NSE
Stock prices at the NSE
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Nairobi Securities Exchange (NSE) recorded a decline in volumes and turnover when the bourse closed Thursday last week ahead of the Christmas holiday. Data indicates that weekly turnover declined 33.77% to Ksh1.37 billion compared to Ksh2.06 billion posted the prior trading week. Analysts see an uptick in stocks as the market ushers in the New Year and with Covid-19 effects reducing due to the availability of vaccines.

The volume of shares traded last week was 44.58 million, a drop of 47.14% from the previous week’s 84.33 million traded shares. The banking sector moved shares worth Ksh675 million, accounting for 49.48% of the week’s traded value. KCB Group Plc was the top performer in the banking sector, its share price rising marginally by 0.54% to Ksh37.00 with 7.4 million shares valued at Ksh273 million traded.

It was followed by Equity Group, the most capitalized at Ksh130.76 billion, which moved 7.3 million shares at the price of Ksh34.65 and a turnover of Ksh255 million.

Available market data shows that Equity Group shares have shed 34% of its price YTD compared to KCB, which has declined 30.52% in the last 52 weeks.

The two biggest lenders have had their balance sheets hit by rising loan defaults, denying them the much-needed interest income.

Safaricom, whose shares have risen by 7.26% YTD, saw its share price appreciate last week to hit a high of Ksh34.00. Safaricom counter had a turnover of Ksh406 million, which is 29.8% of the previous week’s overall traded value.

With a Ksh18.65 million market cap, Bank of Kigali was last week’s top price gainer, its share price up 13.04% to KSh 20.80 per share.

Worst performers

Express Kenya Plc was last week’s worst performer, declining 12% in share price to close the week at Ksh22. Express is the 4th worst performer at the NSE in 2020, according to available data, shedding off its price 52.43% YTD, ahead of WPP ScanGroup, Nation Media Group, and Bamburi Cement, which has lost 64.81%, 58.16%, and 52.63% in shareholders’ wealth during the year.

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The derivative market dipped significantly last week with a total of 30 contracts valued at Ksh580,000, compared to 168 deals valued at Ksh3.5 million posted at the end of the prior week.

Fixed income segment

The fixed income securities market had a 1.05% growth in activity with KSh16.03 billion worth of bonds traded. This is compared to KSh 15.86 Billion the previous week.

The benchmark NSE All-share index (NASI) had a weekly gain of 2.14 points or 1.45% to close at 150.18 points, an overall YTD loss of 9.75%. The NSE 20 share index was up 42.63 points or 2.37% to close last week at 1,893.51  points.

The NSE 25 was also up 45.44 points or 1.38% to 3,344.26. The NSE 20 and the NSE25 share indices have shed 30.7% and 18.44%, respectively, in YTD performance.

Next >> Nigerian Tycoon Takes Over Daniel Moi’s Bank

Written by
BT Reporter -

editor [at] businesstoday.co.ke

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