2022 Week 42: Market Cap Trainers Summary
- The all-inclusive NASI share price index decreased by 1.23% from 129.90 to 128.30 during the week ending October 21.
- The NSE 20 share price index increased by 2.71% from 1700.00 to 1704.60 during the week ending October 21.
- The NSE 25 share price index decreased marginally by 0.55% from 3125.96 to 3108.64 during the week ending October 21.
- Market capitalization decreased from KES 2.024 trillion to KES 1.999 trillion in the week ended October 21.This was in line with NASI index that tracks the performance of the whole market. It is worthy to note that Safaricom Plc market capitalization (Ksh 1.024 trillion) currently accounts for 50.59% of NSE market capitalization.
- Volume of shares traded decreased by 54.91% to close the week at 24.80 million, compared 55.00 million recorded in the previous week.
- Equity turnover decreased by 53.22 percent to Kshs 0.63 billion for week ended October 21 compared to KES 1.18 billion in the preceding week. Year to date shares worth Kshs 75.84 billion have been traded in the Nairobi Securities Exchange. It’s worthy to note that the NSE Plc makes 0.24% of equity turnover as equity trading fees which accounts for over 58% of its total income.
|COUNTER||CORPORATE ACTION||DECLARED||BOOKS CLOSURE DATE||PAYMENT DATE|
|Jubilee Holdings||Interim Dividend||KES 1.00||09-Sep-2022||11-Oct-2022|
|NCBA||Interim Dividend||KES 2.00||15-Sep-2022||30-Sep-2022|
|EABL||Final Dividend||KES 7.25||15-Sep-2022||30-Oct-2022|
|BOC Kenya||Interim Dividend||KES 1.60||30-Sep-2022||22-Oct-2022|
|Centum Investment||Final Dividend||KES 0.587||30-Sep-2022||Not Disclosed|
CORPORATE ANNOUNCEMENTS AND KEY EVENTS FOR THE LAST WEEK AND CURRENT WEEK
- In the Treasury bills auction of October 19, the government sought to raise KES 24 billion but received bids totalling KES 28.30 billion representing a performance of 117.93% percent. Amount accepted amount to KES 22.49 billion compared to KES 27.01 billion last week. Interest rate on 91-Day Treasury bill, 182-Day Treasury Bill and 364-Day Treasury bill was 9.100%, 9.664% and 9.928% respectively. The subscription rates across the three papers were 487.96%, 48.20% and 39.65% respectively.
- The bond market reported decreased activity with bonds worth KES 9.40Bn transacted compared to KES 14.00Bn registered the previous week.
|DATE||BOND TURNOVER IN KES BN|
|07 October 2022||13.60|
|14 October 2022||14.00|
|21 October 2022||9.40|
- The Central Bank of Kenya sought to raise KES 20 billion by auction of fixed bond FXD1/2022/25 in 19 October 2022. Bids received for the bond amounted to KES 14.89 billion representing a 74.47% of which the CBK accepted KES 13.67 billion representing an acceptance rate of 91.81% clearly indicating the resolve of the CBK to lower government borrowing costs. The average interest rate for bond FXD1/2022/25 was 14.188%.
- Safaricom PLC will convert to a holding company in readiness for compliance with the Central Bank of Kenya guidelines that require mobile money services be ring fenced from other services provided by telecommunication companies in Kenya. Safaricom will have separate subsidiaries for Mobile Money; voice and data business; Ethiopia and its tower business. This tentatively will be accomplished by the end of the year.
- Following the failure for the nationalisation plan for Kenya Airways, the government of Kenya is changing tact on the same. The government intends to restructure KQ into separate lines of Cargo and Passenger businesses in an attempt to make it profitable.
- The International Monetary Fund has projected that Kenya’s forex reserves will fall by end of the year to 3.9, below the four month import cover for the first time since August 2011.
- Roam Company, a Swedish-Kenyan Company, launched its first –ever electric mass transit bus in Kenya: Can take 77 passengers; travels 360kms on full charge; has wheel chair area with access ramp; has air conditioning; chargeable with power grid or solar and charges in under 2 hours.
- Kenya has so far exported 1.4 million KGS of khat earning the country KES 4bn in 3 months since the resumption of trade after the two countries resolved an earlier tiff. The 3-months miraa exports are equivalent to 30% of Kenya’s 13.425B total exports to Somalia in 2021.
- According to the Kenya Agricultural and Livestock Research Organisation, at least 500,000 acres are expected to be put under cultivation of GMO crops in the March-May rainy season in 2023. This is equivalent to 3.5% of Kenya’s arable land.
- President William Ruto has promised manufacturers a predictable tax regime as part of his gov’t plan to attract investment. The president is aiming to have a 22% CAGR for the sector, aiming to have the sector contribute 20% to GDP by 2030.
- The high court has dismissed a petition by a former director of BOC Kenya seeking to halt the takeover of the company by Carbacid Investment PLC. The director had argued Carbacid’s offer to acquire BOC at KES 63.50 per share is gross under valuation for the company. We are positive of Carbacid prospects moving forward and should be considered for purchase at Sh.11.50 per share.
LOCAL MARKET SUMMARY FOR WEEK ENDED 14 OCTOBER 2022
|Details||LAST PRICE 14/10/2022||LAST PRICE 07/10/2022||W-O-W CHANGE%|
|NSE 20 Index||1700.22||1676.77||1.40%|
|NSE 25 Index||3125.96||3034.74||3.01%|
|All Shares Index||129.90||126.32||2.83%|
|Equity Turnover in KES Billion||1.18||2.50||-52.80%|
|NSE Market Capitalization in KES Trillion||2.024||1.968||2.85%|
|Volume of Shares Traded in Million||55.00||101.00||-45.54%|
|Bond Turnover in KES Billion||14.00||13.60||2.94%|
|Murban Crude Oil (USD/BBL.) (13/10/2022)||93.96||95.21||-1.31%|
|KENYA 2Y Treasury Bond Yield||11.080||11.250||-1.51%|
|KENYA 10Y Treasury Bond Yield||13.870||14.189||-2.25%|