NSE Weekly Market Review – Week 19, 2021

The Nairobi Securities Exchange (NSE) posted increased in activity during the week. The equities market turnover increased by 14.23% to Kes.3.05 billion from the Kes.2.67 billion achieved in the preceding week. This was backed by the increase in activity on the major banking counters and lots of activity in the telecommunications sector.

The benchmark all share index of the Nairobi Securities Exchange (NASI) took a hit during the week, declining by 3.12% week on week to close the week at 165.76 points, the decline on NASI was mainly attributed to an overall decline in a vast majority of shares listed on the Nairobi Securities Exchange.

The NSE 20 share index was similarly down, shedding 0.75 points or 0.04% to close Friday at 1,862.50 points while the NSE25 share index dropped 139.90 points or 3.73% from last week’s close to stand at 3,586.62. The NSE 20 has shed 0.28% while the NSE25 has gained up-to 5.02% respectively in year to date performance.

Listed banks on the NSE was the most active sector with shares valued at Kes.1.8Bn transacted which accounted for 60.96% of the week’s traded value. KCB Group was the top mover on the sector, with 21 million shares valued at Kes.925 million at a fairly stable price of Kes.41.95 per share. Equity Group Holdings Plc moved 20 million shares valued at Kes.823 million and closed at Kes.40.95 per share.

The telecommunications sector was second in activity with Safaricom declining by 3.43% to Kes.39.40, down from Kes.40.80 registered the previous week. Safaricom had shares valued at Kes.980 million transacted; translating to 32.14% of the week’s traded value.

During the week, Safaricom was on the spotlight, releasing their full year results. The listed Telco posted a 6.8% decline in profit after tax for the year, with Direct costs grew by 7.1% y/y to Kes 80.0 billion. MPESA commissions grew by 18.4% y/y to Kes 28.2 billion on the back of increased MPESA deposits. Promotions and value added costs eased owing to movement restrictions with more focus on digital advertising. Direct cost intensity (direct costs/total revenues) rose from 28.4% to 30.3% due to a faster growth in direct costs than revenues (+0.6% y/y to Kes 264.0 billion).

Nairobi Business Ventures [NBV] was the week’s top gainer on the Nairobi Securities Exchange (NSE), adding 12.13% in share price appreciation to close the week at Kes 4.90 per share from the Kes 4.37 per share posted in the previous week. WPP Scangroup Plc was the week’s top laggard with a 8.85% share price decline to end the week at Kes 5.56 per share from the Kes 6.10 posted in the previous trading week.

During the week, the NSE also launched the unquoted securities market (USM) as it seeks to boost trading at the bourse amid COVID-19 squeeze.

NSE Weekly Bonds & Derivatives

The Derivatives Market of the Nairobi Securities Exchange closed the week with a total of 203 contracts valued at Kes. 8.2million transacted, this was a decline in transaction value from the 203 contracts valued at Kes.8.2 million posted in the preceding week.

Trading on the secondary bond market at the Nairobi Securities Exchange posted a 3.38 % rise in activity with Kes.21.19 billion worth of bonds traded against the Kes 20.50 billion worth of bonds transacted in the previous week.