NSE Market Weekly Review - Week 50, 2020

NSE Weekly Report

The Nairobi bourse closed the trading week at KES 2.259 Trillion market capitalization which was an improvement from the previous week. The NSE market indices, NSE All share index (NASI) moved up 1.15 (0.79%) points to close at 147.12, representing a 1 week loss of 0.68%, a 4-week gain of 2.22%, but an overall year-to-date loss of 11.59%.  

Activity level on the market improved by volumes and slightly declined in values exchanged. The turnover for the market stood at KES 2.68 Billion achieved on trades of  103.7 million shares. 

Safaricom was the most traded counter with over a third of the total shares traded for the week. The shares added a price appreciation of 4%, closing the week at KES 32.65

The market closed positive with the NSE closing the last trading day with 22 gainers against 15 losers. 

Outlook

The coming week will likely turn the market higher as investors welcome the FDA approval of Pfizer and BioNtech vaccine for emergency use as the world continues to deal with the Covid-19 pandemic. The vaccine will return confidence to both internal and external investors who are likely to flood the market to take up shares before the prices begin to skyrocket due to economic recovery. 

NSE today

Summary (11th December, 2020)

At the end of the last weekday of trading on the Nairobi Securities Exchange (NSE), A total of 23,218,900 shares in 792 deals, corresponding to a market value of KES 423,645,989 were traded. Compared with the previous NSE trading day (Thursday, December 10), today's data shows 36% decline in volume, 57% decline in turnover, and 8% decline in deals. The current NSE market capitalization is KES 2.259 trillion. 

In aggregate, 45 NSE listed equities participated in trading, ending with 22 gainers and 15 losers.

Top Gainers

Bank of Kigali Group led the gainers with 9.81% share price appreciation closing at KES 20.15 per share, followed by Umeme (+9.76%), Bamburi Cement (+9.58%) and Express Kenya (+9.52%). 

Top Losers

On the losing side, Home Afrika came out last with an end-of-day price depreciation of 7.32% at KES 0.38 per share, followed by Housing Finance Company (-6.67%), Scangroup (-4.92%) and Eaagads (-4.72%).

Top Movers

Carbacid Investments recorded the highest volume of 12.8 million traded shares, followed by Safaricom (4.21m), Equity Group Holdings (3.21m) and KPLC (1.67m)

Recommended share Purchase

I would recommend investors to buy Scangroup shares at the current price. 

Scangroup has;

Share price = KES 6.18

PE Ratio = 4.475

EPS = 1.37

Market Capitalization = 2,809,013,903 

NSE Surges close to 1 Billion Turnover

 Summary (10th December, 2020)

At the end of today's trading session on the Nairobi Securities Exchange (NSE), a total of 36,398,800 shares in 858 deals, corresponding to a market value of KES 994,785,709 were traded. Compared with the previous NSE trading day (Wednesday, December 9), today's data shows 103% improvement in volume, 93% improvement in turnover, and 24% improvement in deals. The current NSE market capitalization is KES 2.241 trillion 

In aggregate, 45 NSE listed equities participated in trading, ending with 26 gainers and 13 losers. 

Top Gainers

Bank of Kigali Group led the gainers with 8.26% share price appreciation closing at KES 18.35 per share, followed by Bamburi Cement (+7.9%), Housing Finance Company (+7.14) and Uchumi Supermarkets (+3.45%).

Top Losers

On the losing side, Olympia Capital Holdings came out last with an end of day price depreciation of 7.95% at KES 2.20 per share, followed by Jubilee Holdings (-5.26%), Sameer Africa (-4.76%) and Unga Group (-3.23%).

Top Movers

Safaricom recorded the highest volume of 23.6 million traded shares, followed by KPLC (6.48m), Equity Group Holdings (3.75m) and KCB Bank Kenya (1.19m).

Recommended Stock Purchase

I would recommend that investors buy Jubilee Holdings at the current price. 

Jubilee Holdings has; 

Price = KES 270

PE Ratio = 5.5

EPS = 49.07

Market Capitalization = 19,567,696,500