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

NSE Today

NSE Market Summary

(9th December, 2020)

At the end of today's trading session on the Nairobi Securities Exchange (NSE), a total of 17,893,800 shares in 691 deals corresponding to a market value of KES 516,769,289, were traded. Compared with the previous NSE trading day (Tuesday, December 8), today's data shows 16% decline in volume, 22% decline in turnover, and 24% decline in deals. The current NSE market capitalization is KES 2.251 trillion. 

In the aggregate, 44 listed securities participated in trading, ending with 18 gainers and 21 losers.

Top Gainers 

Sanlam Kenya led the gainers with 9.55% share price appreciation closing as KES 12.05 per share, followed by Bamburi Cement (+9.48%), Liberty Kenya Holdings (+8.45%) and Sameer Africa (+5%).

Top Losers

On the losing side, Eveready East Africa came out last with an end-of-day price depreciation of 8.13% at KES 1.13 per share, followed by Nairobi Business Ventures (-6.26%), Kenya Re-Insurance Corporations (-5.07%) and Stanbic Holdings (-4.46%). 

Top Movers

Safaricom recorded the highest volume of a 9 million traded shares, followed by Equity Group Holdings (4.92m), Kenya-ReInsurance Corporation (795,500) and KenGen (789,600)

Recommended Stock Purchase

I would recommend that investors buy Kenya Re-Insurance which has;

Price = KES 2.06

PE Ratio = 3.404

EPS = 0.6375

Market Capitalization = 6,075,557,910

The PE Ratio implies that the stock is undervalued and investors will earn good capital gains as the economy recovers from Covid-19

NSE Bourse Rebounds

 8th December, 2020

Stock Market Summary

At the end of today's trading session on the Nairobi Securities Exchange(NSE), a total of 21,212,600 shares in 961 deals, corresponding to a market value of KES 659, 739,287.00, were traded. Compared with the previous NSE trading day (Monday, December 7), today's data shows 555% improvement in volume, 659% improvement in turnover, and 43% improvement in deals. The current NSE market capitalization is KES 2.25 trillion.

In aggregate, 43 NSE listed securities participated in trading, ending with 15 gainers and 17 losers.

Top Gainers 

Longhorn Publishers led the gainers with 8.24% shar price appreciation closing at KES 4.86 per share, followed by Eveready East Africa(+6.96%), Express Kenya(+4.65%) and Trans-Century(+4.13%).

Top Losers 

On the losing side, BOC Kenya came out last with an end-of-day price depreciation of 9.06% at KES 57.75 per share, followed by Housing Finance Company(-8.79%), CIC Insurance Group(-4.19%) and I&M Holdings(-3.93%).

Top Movers

Equity Group Holdings recorded the highest volume of 9 million traded shares, followed by Safaricom(4.13m), Co-operative Bank of Kenya(2.18m) and KCB Bank Kenya (1.21m)  

NSE Turnover Plunges

 7th December, 2020

The NSE turnover plunged to 86.7 Million shillings after a huge recovery last week. Only 3,320,300 shares were traded today. The last time the turnover was this low it was attributed to a system glitch at the market. 

It is not clear why the turnover was quite low but this is expected as small investors free some cash for the Christmas festivities. It is also a great time for serious investors to invest as the prospects of the Covid-19 vaccine will return investor confidence as markets begin to recover world wide. 

  

Red Flag over Uchumi Supermarkets

 

Agha Khan Walk Branch

Uchumi supermarket which has been struggling for a turn around shut down one of its remaining branches and the only one in Nairobi CBD, the iconic Agha Khan walk branch. This comes after the new management promised investors a turn around barely a year ago where the management was given a restructuring leeway by commercial banks on its debt. The restructuring involved a write off following the lenders acceptance of the retailer's company voluntary agreement(CVA). 

Uchumi was owing creditors and suppliers Kshs 3.9 Billion which was way above its assets of Kshs 1.4 Billion as at June 2018. It is interesting that CMA and the NSE have not suspended the stock since trading in the stock might be as good as defrauding unsuspecting investors. 

We hope that CMA and the NSE will advise investors on Uchumi stocks because investors would expect the supermarket to remain open and take advantage of the festive seasons as part of its turn around strategy. In the meantime investors should be weary about Uchumi stocks as the supermarket does not give any glimmer of hope about its revival.