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NSE Weekly Market Review – Week 36, 2020

The Nairobi Securities Exchange closed the week with a cumulatively bullish signal, continuing an twelve day trading rally on the benchmark indicators. The NSE All-Share Index appreciated by 0.38% to close the week at 139.27 points, representing a 4-week gain of 6.65%, but an overall year-to-date loss of 16.31%

A total turnover of 122 million shares worth Kes 2.96 billion exchanged ownership between investors this week by on the Exchange, in contrast to a total of 115 million shares valued at Kes 2.75 billion that exchanged hands in the previous week.

Safaricom, the largest company by market capitalization in the region led in terms of market activity, closing the week with a  0.84% decline in price at Kes.29.60, moving 60.5 million shares valued at Kes.1.8 billion. This represented 61.16% of the week’s activity by value.

The Financial Services industry was second in the activity chart with Kes 880 million worth of share; thus contributing 29.69% to the total equity turnover. Equity Group Holdings Plc shed 2.19% in value to close the week at Kes.35.65, down from Kes.36.45 posted in the previous week with shares worth Kes.382 million transacted. KCB Group Plc was however added 0.96% in share price to Kes.36.75, with 5 million shares valued at Kes.192 million traded. Bank of Kigali Group gained 11.53% in share price, making it to the top gainers list this week, closing the week at Kes.16.45 per share.

During the week,Total Kenya Plc released their half year results, indicating the firm had posted a profit for the first six months of the year despite hard conditions in oil prices and decline in demand caused by the coronavirus pandemic. BAT Kenya Plc similarly announced Isuzu East Africa’s Chief Executive office Rita Kavashe as the new board chairperson.

The NSE 20 Share index one year performance chart

The Derivatives Market of the NSE closed the week with a total of 18 contracts valued at Kes.623,000 concluded during the week’s trading session while the secondary trading on the bond market saw a rise in activity with bonds valued at o Kes.32.2 billion compared to Kes.24.5Bn registered the previous week.

Outlook

The Nairobi Securities Exchange finished the trading week on an impressive note, backed by a higher bullish trend set throughout the trading week. This was backed by increased buying pressure on most counters by foreign investors, mainly on the blue-chip stocks.

The recent stability in the global markets also provided the much needed market confidence in boosting market liquidity relatively, with a rise on the major global indices in the U.S, Europe & Asia.

However, we envisages cautious buying of stocks amid the gaining streak on the NSE, as we expected that investors will continue on their profit-taking which was seen on Thursday & Friday, in the subsequent trading days ahead.