The Trading Room: Weekly Market Review.(Week 46)

Global stocks advanced on Hopes of a U.S.-China trade deal turned world stock markets and other risk assets higher on during the week. The escalating wave of pro-democracy global protests from Hong Kong to Chile left some deep scars in Emerging market stocks which were down 1.7% for the week,leaving the Hang Seng  Index down 4.7%, its worst weekly performance in four months.

Also in the week, Morgan Stanley Capital International ( MSCI) has made a change in the MSCI Frontier Market Index as part of the company’s regular update cycle with KCB being downgraded and Barclays Bank of Kenya & Co-operative Bank of Kenya being dropped from the list

Regarding the performance of listed stocks during the Nairobi Securities Exchange‘s trading week. Week on Week (w-o-w) turnover dropped by 55.0% to settle at KES 2.7 Billion against last weeks turnover of KES 6.0 Billion with an average daily turnover at 460 Million spread across the 5 day trading week against last week’s 900 Million.

Total Market Volume for the week stood at 86 Million shares against a volume of 178 Million shares transacted the previous week. The average daily volume stood at 13.8 Million against last week’s 24 Million with Wednesday having the lowest volume turnover of 12 Million shares.

The benchmark NSE All Share Index (NASI) closed Friday at 155.98, representing a week on week (W/W) loss of 3.11%, a 4-week month to month (M/M) gain of 5.19%, and an overall year-to-date (YTD) gain of 11.07%.

NSE 20 Share Index YTD performance.

The All share index and the NSE20 Share index were down week-on-week.The NSE 25 Share Index (NSE25) closed Friday at 3852.06 points, which represented a w/w loss of 2.66%, a M/M gain of 11.06%, and an overall year-to-date (YTD) gain of 8.46%.

The NSE 20 share Index (NSE20) closed at 2652.95 points; representing a w/w loss of 2.39%, a 4-week month to month (M/M) gain of 8.80% and a Year to date (YTD) loss of 6.38%.

NSE’s Derivatives Market (NEXT) closed the week with a total of 22 contracts traded valued at Kes 830,000 with the 19DEC19 Safaricom contracts trading 12 contracts amounting to Kes 348,000; an increase in value from the previous week of 21 contracts valued at Kes 756,000.

Next week, we expect to see a continued sell as investors continue profit taking. Continued stalemate of Buy-side & Sale side at the NSE as a new floor is set for banking stocks after the two week rally is most likely to continue. As the low season investor period picks speed, turnover is likely to remain relatively standard.

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