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NSE Weekly Market Review – Week 10, 2021

The Nairobi Securities exchange (NSE) was on the gaining streak this week as investors continued to roam the bourse, following growing positive sentiments on the recovery of the global economy this year from last year’s impact of the corona virus. Investors were keen to see how foreign markets would react to news of United States President Joe Biden, signing into law the The American Rescue Plan Act of 2021, a whooping $1.9 trillion economic stimulus bill.

The benchmark NSE All share index (NASI) added 0.41 points or 0.25% to close the trading week at 162.08 points. This represented a 1-week gain of 0.25%, a one month loss of 1.18 but an overall year-to-date gain of 6.55%. The NSE 20 share index and the NSE 25 share index were similarly on the positive edge, adding 18.35 points or 0.95% and 30.72 points or 0.86% to close the week at 1,923.04 and 3,617.79 respectively.

The NSE 20 and the NSE25 share indices have gained up-to 2.92% and 5.93% respectively in year to date performance.

NSE

NSE 20 Share Index Chart PerformanceEquity turnover  on the exchange was up 52.38% at Kes 3.20 billion from last week’s turnover of Kes 2.1 billion. Volume of shares exchanging hands on the exchange similarly took-off, posting a 42.84% rise, with 95.7 million shares exchanging hands as compared to the 67 million shares transacted the previous week.

Safaricom was the most active counter by value and volume, accounting for 50.26% of the week’s traded value, with 44 million shares valued at Kes 1.6 billion transacted. The share saw a 0.54% decline in share price to close the week at Kes 37.10 per share from last week’s close of Kes 37.30 per share.

The Banking Sector cumulatively came in second in activity with shares worth Kes.891 million transacted an equivalent of 27.45% of the week’s traded value. KCB Group Plc gained 4.58% in share price to Kes.39.95 per share with 10 million shares valued at Kes.396 million transacted. Equity Group Holdings Plc was up 5.12% to close the week at Kes.40.00 per share, from the Kes.38.05 per share posted in the preceding week, Equity moved shares valued at Kes.346 million.

Liberty Holdings Plc was the top gainer on the bourse during the week, giving investors returns of 19.06% during the week to close the week at Kes 9.62 per share from the Kes 8.08 per share the counter posted last week. Liberty Holdings rallied on news that the parent firm was seeking to increase it’s stake in the company by 16%.

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Liberty Kenya Holdings Plc, one year price chart activity.

On the losers’ side, Nation Media Group Plc emerged as the top loser, shedding 22.88% in share holder wealth to close the week at Kes 19.55 per share from last week’s close of Kes 25.35 per share. Nation Media Group had rallied over the past week  after the company’s board announced they would perform a share-buyback on the share, with an aim to increase their stake by 10% in the media company.

NSE Bonds & Derivatives

The Derivatives Market of the Nairobi Securities Exchange closed the week with a total of 95 contracts valued at Kes. 3.18 million transacted, this was a rise in transaction value from the 67 contracts valued at Kes.2.69 million posted in the preceding week.

Trading on the secondary bond market at the Nairobi Securities Exchange posted a 22.22% decline in activity with Kes.14.0 billion worth of bonds traded against the Kes 18.0 billion worth of bonds transacted in the previous week.