Equity market commentary

Nairobi; Kenya: For the third consecutive week, the NSE 20 index closed the week 0.2 per cent lower. Failing to build up on last week’s marginal 0.5 per cent gain, the NASI was down 0.7 per cent. Equity turnover was up 25 per cent to $69.1m, driven by increased activity on KCB and Diamond Trust Bank (DTB).

Foreign investor participation broadly remained unchanged having stood at 51.8 per cent. Foreign net outflows were at $2.7m (Sh240 million), compared to inflows of $209,000 (Sh18. 5 million) recorded last week. KCB recorded the highest net inflows of $940,000 (Sh87 million) while Equity Bank had the highest net outflows of $3.5m (Sh315 million).

Accounting for 35 per cent of the value traded this week, DTB was the top mover. Up 5.2 per cent, BAT was the best performing mover on the back of local institutional trades. The cigarette manufacturer set a new all-time high of Sh1000.

Up 19.2 per cent, Unga Group was among the top gainers for the second week in a row. Across utilities, Kenya Power and KenGen gained 4.1 per cent and 11 per cent ahead of financial year 2014 performance figures to be released this month. Oil marketers, KenolKobil and Total gained 2.1 per cent and 3.7 per cent respectively.

Down 18.5 per cent, Britam topped the losers’ list on news that private equity firm, Cytonn Investments, was appointed the lead transaction advisor for a Sh40 billion property deal that was to be previously undertaken by Britam.

Eroding gains made in the previous week, Longhorn Publishers shed 14 per cent. Jubilee Insurance continued on its losing streak, having retreated 11.8 per cent. In the coming week, Olympia Capital closes its books for a final dividend of Sh0.25 on October 17, 2014. -Standard Investment Bank