Market Report
under review. The All Share Index,
The NSE20 and NSE 25 were down
3.18%, 4.91% and 4.25% (respectively)
closing at 159.25, 3626.62 and
4121.96 points (correspondingly).
The poor performance was despite
a significant increase in turnover
which was caused by sell-offs mainly
by foreign investors. Similar to
the previous period, the investors
were exiting the large cap counters
mainly Safaricom Ltd (NSE: SCOM),
Equity Group Holdings Plc (NSE;
EQTY) and KCB Group Plc (NSE:
KCB). General market activity was
however maintained within the large
caps with Safaricom Plc holding the
top traded position in the review
period. Also to note was the poor
performance recorded in the second
week of October (from October 10 th )
following some developments in the
political scene that saw shareholder
wealth retract by KES 25.75Bn.
However during the period under
review, shareholders on average
lost about 3.19% of their wealth. The
top traded counters were Safaricom
Plc (NSE: SCOM), KCB Group Plc
(NSE: KCB), Jubilee Holdings Ltd
(NSE: JUB), Equity Group Holdings
Ltd (NSE: EQTY) and Diamond Trust
Bank Kenya Ltd (NSE: DTK). The
gaining counters in the period were
Olympia Capital Holdings Ltd (NSE:
OCH), Standard Group Ltd (NSE:
SGL), Home Afrika Ltd (NSE: HAFR),
Express Kenya Ltd (NSE: XPRS) and
Sanlam Kenya Plc (NSE: PAFR) which
gained 10.34%, 9.02%, 4.76%, 4.17%
and 2.65% (respectively). Olympia
Capital Holdings Ltd (NSE: OCH)
has been the top gainer in the past
two successive review periods. The
month’s losers were Nairobi Business
Ventures Ltd (NSE: NBV)-which
has lost two successive periods in a
row-, ARM Cement Ltd (NSE: ARM),
KCB Group Ltd (NSE: KCB), Kenol
Kobil Ltd (NSE: KENO) and National
Bank of Kenya Ltd (NSE: NBK) which
Sector
Constituents Gain/ -Loss
INVESTMENT SERVICES 1 0.80%
INVESTMENT 5 0.46%
EXCHANGE TRADED FUNDS 1 0.00%
TELECOMMUNICATION & TECHNOLOGY 1 -0.99%
AGRICULTURAL 6 -1.38%
MANUFACTURING & ALLIED 8 -1.88%
INSURANCE 6 -2.09%
ENERGY & PETROLEUM 7 -4.68%
BANKING 11 -5.52%
COMMERCIAL AND SERVICES 13 -6.13%
CONSTRUCTION & ALLIED 5 -6.79%
REAL ESTATE INVESTMENT TRUST 1 -9.61%
AUTOMOBILES & ACCESSORIES 1 -10.00%
66 -3.68%
correspondingly shed 36.36%, 13.62%,
11.90%, 11.85% and 10.71%. Standard
Group Plc (+119.70%), Crown Paints
Kenya Plc (+80.95%), Diamond Trust
Bank of Kenya Ltd (+51.69%) and
KenGen Co. Ltd (+50.00%) were in the
top YTD gainers in the period while
the YTD top losers that maintained
on the list were Nairobi Business
Ventures Ltd (-77.85%), Sameer
Africa Ltd (-69.41%), ARM Cement Plc
(-49.02%), and Deacons (East Africa)
Plc (-34.71%).
All sectors except the
Investment Services and Investment
Sectors lost in the period with the
Automobiles & Accessories Sector
shedding the most as a result of a 10%
drop in its sole constituent counter’s
share price.
There was notable increase in
foreign investor participation in the
period as the investors sold off most
of their portfolios with local investors
staying clear off the market due to
the rising political temperatures.
The local investors displayed bullish
behavior in the previous period
as opposed to this period which
they have taken a “wait-and-see”
approach on the market. Foreign
investors dominated the market,
accounting for 60% of the activity
and emerged as net sellers in the last
half of September as they turned net
buyers in the first of October and
mainly on the large cap counters.
Local investors have been buyers on
the large caps as well as speculators
on the small cap counters.
Market Outlook.
The market has taken a hit from
the uncertainty that comes with
the rising political temperatures.
Investors also seem to remain very
skeptical about any opportunities
left in the market as they are seen to
completely stay out of the market. We
expect the subdued turnover levels
and foreign investor dominance to
persist until the repeat presidential
polls, slated for October 26th, are
held. We also expect continued
sell-offs by foreign investors who
have been net sellers for more than
three months now. Local investors
will continue to speculate in the
market until the general political
environment eases up. That said, we
remain confident that the market
will pick up as soon as elections
are conducted and some level of
confidence in the economy is felt TB
NOVEMBER 2017 • THINK BUSINESS | 21