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Market Report; 07 July, 2021; Safaricom Pays Micheal Joseph a Bonus of Kes 127.5 Million

At the end of today’s trading session on the Nairobi Securities Exchange

A total of 15,587,500 shares in 1,202 deals, corresponding to a market value of KES 454,182,325.00, were traded.

Compared with the previous NSE trading day (Tuesday, July 6), today’s data shows 19% improvement in volume, 3% decline in turnover, but 22% improvement in deals.

The current market capitalization of the Nairobi Securities Exchange is KES 2.65 trillion.

In the aggregate, 45 NSE listed equities participated in trading, ending with 22✅ gainers and 14 🔻losers.

CIC Insurance Plc [CIC] led the gainers with 9.54% share price appreciation closing at✅ KES 3.10 per share, followed by:

✅ Carbacid Plc [CARB] (+7.08%)
✅ BOC Gases Kenya Plc [BOC] (+6.91%)
✅ Sanlam Kenya Plc [SLAM] (+5.8%).

On the losing side, TransCentury Plc [TCL] came out last with an end-of-day price depreciation of 🔻9.09% at KES 1.30 per share, followed by:

🔻Sameer Africa Plc [SMER] (-8.82%)
🔻Uchumi Supermarkets Plc [UCHM] (-7.41%)
🔻Crown Paints Plc [CRWN] (-5.72%).

Safaricom Plc [SCOM] recorded the highest volume of 6.5 million traded shares, followed by:

➖ Equity Group Holdings Plc [EQTY](2.1m)
➖ CIC Insurance Plc [CIC] (2.04m)
➖ Bank of Kigali Group Plc [BKG] (1.38m)

➡️The benchmarks NSE All-Share Index [NASI] gained✅ 0.87 points to close at 174.80
➡️The NSE 20 Share Index gained✅ 7.87 points to close at 1939.44
➡️The NSE 25 Share Index gained✅ 27.59 points to close at 3830.60

Bonds & Derivatives on NSE

The derivatives market of the Nairobi Securities Exchange posted a rise in activity during Today’s trading session, with 27 single stock futures contracts valued at Kes 980,100 concluded, compared to the 26 contracts valued at Kes 394,495 concluded on the previous session.

Trading on the secondary bond market on the Nairobi Securities Exchange posted a rise in activity during today’s trading session with bonds worth Kes 3.35 billion transacted in 58 deals as compared to the Kes 3.23 billion worth of bonds achieved in 82 deals in the preceding session.

Market Outlook

Safaricom recorded the highest number of volumes with 6.5 million shares valued at Kes 2.7 million representing 59.75%  of the day’s traded value. This comes after the telecommunication company announced they have paid Michael Joseph an additional bonus of Kes. 127.5 million in the year ended 31st March 2021, making him Kenya’s best-paid non-executive board member of a firm listed on the Nairobi bourse.

Besides the Kes.127.5 million bonus that Joseph earned, Safaricom also paid him an additional kes. 6.3 million for his role as chairman and non-executive director. This raised his total pay for the year under review to Kes. 133.8 million.

Additionally, Micheal Joseph has paid Kes 5.7 million per annum and a sitting allowance of Kes 85,000 per meeting.

Other non-executive directors are paid fees of Kes 2.2 million each per annum and are entitled to a sitting allowance of Kes 60,000 per meeting. The person chairing a board committee is paid Kes 74,150 per meeting.

However, Safaricom did not disclose in the annual report whether there was any deferred compensation owed to Mr Micheal Joseph.