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The Trading Room: Weekly Market Review.(Week 41)

On the trading week ending October 11,2019. Stocks rose globally on optimism that Chinese and U.S. officials made progress in negotiations that laid the groundwork for a truce on additional tariffs. Positive comments on the Brexit front added to the optimism, leading international developed-market stocks to record their biggest weekly rise in four months.

Spot Market

The Nairobi Securities Exchange had a 4 day trading week. Week on Week (w-o-w) turnover dropped by 40.91% to settle at KES 1.3 Billion against last weeks turnover of KES 2.2 Billion with an average daily turnover at 266.5 Million spread across the 4 day trading week against last week’s 412 Million.

Total Market Volume for the week stood at 42Mn shares against a volume of 81Mn shares transacted last week. The average daily volume stood at 8.3Mn against last week’s 13Mn with Friday having the highest volume turnover of 12.6 Million shares.

Equity Bank was the main player, moving 13.9 Million shares, hitting a low of 35.00 in trading, closing at 36.10 on average. Foreigner Investors held a net selling position on Equity Bank and were the main buyers on KCB Group Plc & Safaricom Plc.

Equity Group Holdings Plc, shares moved highest but price drop was realized week on week.

Investors exhibited nervousness last week as markets sold off due to a variety of reasons. The Secondary bond market was low with issuance of ifb1/2019/16 on the primary market.

The benchmark NSE All Share Index (NASI) closed Friday at 147.64, representing a day change of 0.46%, a week on week (W/W) gain of 0.07%, 4-week month to month (M/M) gain of 2.54%, and an overall year-to-date (YTD) gain of 5.13%.

The NSE 25 Share Index (NSE25) closed Friday at 3505.32 points, which was a daily gain of 0.63%, a M/M loss of 0.25%, and an overall year-to-date (YTD) loss of 1.52%.

The NSE 20 share Index (NSE20) closed at 2455.27 points which represented a daily gain of 0.94%, a week on week (W/W) loss of 0.47% and a Year to date (YTD) loss of 13.36%.

NSE 20 Index YTD Performance. This week closing at 2455.27

The Derivatives Market(NEXT) of the NSE closed the week with a total of 5 contracts valued at Kes 148,000; a 77.61% drop in value from the previous week of 24 contracts valued at Kes 661,000.

Fixed Income

The Bond Market closed with a W/W turnover of Kes 3.5 Billion, a 49.28% decline from last week’s Kes 6.9 Billion. This is attributed to the primaries on the bond market at Central Bank of Kenya with the issuance 60 Billion of 16 Year IFB1/2019/16.

Important Information

The Weekly Market Update is published every Friday, after the Nairobi Securities Exchange closes trading. The Data used is proprietary to and distributed by NSE Plc.  Past performance does not guarantee future results.  Diversification does not guarantee a profit or protect against loss.  Investors should understand the risks involved of owning investments, including interest rate risk, credit risk and market risk. The value of investments fluctuates and investors can lose some or all of their principal. 
 The Data herein is believed to be reliable, but its accuracy and completeness are not guaranteed. This information is approved for use with the public.