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NSE Weekly Market Review – Week 25, 2021

Turnover of the Nairobi Securities Exchange (NSE) rose during the week, boosted by the sale of shares on the banking. Foreign investors maintained a dominant trading stand on the exchange, accounting for 52.20% of the total market activity on the exchange. Local investors on the NSE focused mainly in the telecommunications sector, while foreigners spread out on banking sector and allied sectors.

The benchmark all share index of the Nairobi Securities Exchange (NASI) was on the decline this week, shedding 0.44% week on week to close the week at 171.62 points. This NASI now stands at 12.83% in year to date performance. The decline on NASI was mainly attributed to the decline in share price of Safaricom and other small cap counters.

NSE 20
The NSE20 Share Index, one year technical performance chart

The NSE 20 share index was similarly down, shedding 2.10 points or 0.11% to close Friday at 1,899.11 points while the NSE25 share index was on the rise, posting gains of 1.93 points or 0.05% from last week’s close to stand at 3,749.19. The NSE 20 and the NSE25 share indices have gained up-to 1.64 and 9.78% respectively in year to date performance.

Equity turnover on the bourse was up 42.5% Kes 3.37 billion from last week’s Kes 2.67 billion. The volume of shares traded at the exchange similarly posted a rise of 67.49% to close the week with 112.12 million shares exchanging hands as compared to the 66.94 million traded in the previous week.

The telecommunications sector topped the week’s activity chart with Safaricom shedding 1.21% in shareholder wealth to Kes.40.75 down from Kes.41.25 registered in the previous week. Safaricom had shares valued at Kes.1.7 billion transacted; translating to 52.02% of the week’s traded value.

The Banking Sector was second in activity with shares worth Kes.1.16 billion transacted which accounted for 34.66% of the week’s traded value. Equity Group Holdings Plc rose by 4.13% to Kes.46.60, up from Kes.44.75 registered the previous week with shares worth Kes.533 million transacted. KCB Group edged up 3.06% to Kes.43.85 on a volume of 10.5 million shares valued at Kes.458 million. Co-operative Bank moved 7 million shares valued at Kes.88.8 million and closed at Kes.13.00 per share.

The Manufacturing & Allied Sector had shares worth Kes.277 million transacted which represented 8.25% of the week’s traded value. East African Breweries Plc closed the week 3.97% lower to Kes.181.50 on a volume of 1.1 million shares valued at Kes.209 million. Carbacid Plc was up 2.17% to Kes.11.75 and moved 4 million shares valued at Kes.47 million.

EABL NSE
East African Breweries Plc one year technical chart

Nairobi Business Ventures was the week’s top gainer, adding 22.65% in investor wealth to close the week at Kes 8.34 per share while Transcentury Plc was the week’s top loser, with the shares closing the week at Kes 1.34 per share, a 11.26% decline from last week’s close of Kes 1.51 per share.

NSE Weekly Bonds & Derivatives Overview

The Derivatives Market of the Nairobi Securities Exchange closed the week with a total of 164 contracts valued at Kes. 6.58 million transacted, this was a decline in turnover on the NEXT as compared to the 300 contracts valued at Kes. 10.4 million posted in the preceding week.

Trading on the secondary bond market at the Nairobi Securities Exchange posted a 52.0% growth in activity with Kes.33.06 billion worth of bonds traded against the Kes 21.75 billion worth of bonds transacted in the previous week.