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NSE Weekly Market Review – Week 23, 2021

Market activity on the Nairobi Securities Exchange (NSE) rose during the week, boosted by the sale of shares on the banking sector and also sustained activity on the Safaricom Plc. Foreign investors maintained a dominant trading stand on the exchange. Accounting for 53.46% of the total market activity on the exchange. Local investors on the NSE were mainly in the banking sector, while foreigners spread out on Safaricom Plc and Total Kenya Plc.

The benchmark all share index of the Nairobi Securities Exchange (NASI) was on the positive this week, gaining by 1.45% week on week to close the week at 172.33 points. This was an equivalent of 13.29% in year to date performance. The rise on NASI was mainly attributed to the positive outlook of both small stock and large stocks listed on the Nairobi Securities Exchange.

The NSE 20 share index and the NSE 25 share index were similarly on the positive edge, adding 3.10 points or 0.16% and 53.10 points or 1.44% to close the week at 1,911.92 and 3,745.10 respectively. The NSE 20 and the NSE25 share indices have gained up-to 2.33% and 9.66%% respectively in year to date performance.

The bourse’s weekly equity turnover was up, gaining 108.25% to Kes 4.82  billion from last week’s Kes 2.32 billion. The volume of shares traded at the exchange similarly posted a rise of 93.06% to close the week with 137.17 million shares exchanging hands as compared to the 71.05 million traded in the previous week.

The NSE 20 chart
The NSE20 Share Index, one year technical streaming chart.

 

The Banking Sector topped the week’s performance chart, with shares valued Kes.2.2 Billion transacted which accounted for 45.70% of the week’s traded value. NCBA Group emerged as the most actively traded counter in the banking sector 55 million shares valued at Kes.1.4 Billion trading at between Kes.25.50 and Kes.26.70. Equity Group Holdings Plc was second, gaining 2.80% in share price activity to Kes.44.05. The bank had 11.7 million shares valued at Kes.516 million transacted. KCB Group had 2.3 million shares valued at Kes.101 million traded and closed at Kes.42.60 per share.

The telecommunications sector was second in activity with Safaricom adding 1.85% in shareholder wealth to Kes.41.25 up from Kes.40.25 registered in the previous week. Safaricom had shares valued at Kes.1.8 billion transacted; translating to 37.44% of the week’s traded value. In terms of company specific, Safaricom was the week’s top trader as the company’s consortium officially received their license to operate in Ethiopia.

The Manufacturing & Allied Sector had shares worth Kes.571 million transacted which represented 11.85% of the week’s traded value while the construction & Allied Sector had shares worth Kes.135 million transacted which represented 2.81% of the week’s traded value. Bamburi Cement closed the week 6.17% lower to Kes.35.00 per share on a volume of 3.8 million shares valued at Kes.134 million.

Transcentury Plc was the week’s top gainer, adding 18.03% in investor wealth to close the week at Kes 1.44 per share while Eaagads limited was the week’s top loser, with the shares closing the week at Kes 11.20 per share, a 16.10% decline from last week’s close of Kes 13.35 per share. TCL rose on the back of a rights’ issue which the company’s shareholders approved of during the company’s Annual General Meeting.

Transcentury Plc
Transcentury Plc, one year technical performance chart.
NSE Weekly Bonds & Derivatives Overview

The Derivatives Market of the Nairobi Securities Exchange closed the week with a total of 56 contracts valued at Kes. 2.7 million transacted, this was a notable increase in activity on the NEXT as compared to the 163 contracts valued at Kes. 6.4 million posted in the preceding week.

Trading on the secondary bond market at the Nairobi Securities Exchange posted a 19.74% growth in activity with Kes.16.65 billion worth of bonds traded against the Kes 13.91 billion worth of bonds transacted in the previous week.