NSE turnover contracts by 62 per cent to close week at Sh322m

The NSE activity contracted sharply at the close of trading for the week with turnover down 62.4 per cent closing at Kes 322.5 million from Kes 856.7 million on Thursday, June 3.

The number of shares traded at the Nairobi Securities Exchange (NSE) end of the week session eased to 9.9 million from a previous 30.3 million shares.

Equity Group, Safaricom and Co-op Bank led the day’s trading by value with turnovers of Kes 147.4 million, Kes 40.7 million and Kes 20.7 million respectively.

During the week ended June 4, the bourse market capitalization increased by 1.2 per cent, while equity turnover and total shares traded declined by 39.3 per cent and 14.4 per cent respectively.

The Kenya Shilling remained stable against major international and regional currencies during the week exchanging at Kes 107.73 per US dollar on June 3, compared to Kes 107.57 against the greenback on May 27.

Read also: EABL Sh6bn early bond repayment dips NSE’s debt market to lowest level

The Treasury bills auction of June 3 received bids totaling Kes 39.0 billion against an advertised amount of Kes 24 billion, representing a performance of 162.5 per cent.

In the bonds market, the turnover of bonds in the domestic secondary market declined by 46.1 per cent during the week ending June 3. In the international market, yields on Kenya’s Eurobonds also declined by an average of 5.8 basis points.

Analysis by AIB-AXYS shows that at the close of trading June 4, foreign investors represented 57 per cent of the day’s activity as local investors drove 43 per cent of the trading.

The data further shows that top foreign buys were recorded in Equity Group stock at a volume of over 121 million, followed by Safaricom share at 11 million as regional brewer EABL stock closed the top three at nine million in volume traded.

The same companies, Equity Group, Safaricom, and EABL, also led activity in top foreign sales at 54 million, 34 million, and 13 million in volume of shares sold.

Globally, the financial markets remained quiet as positive economic data and central bank speeches on inflation continued to dominate.

Further, the latest official US employment report is expected to show that jobs in May surged at a faster pace following a weaker than expected outlook report released in April.

International oil prices increased during the week after OPEC and other oil producers agreed to increase supply at a gradual pace against a backdrop of continued economic recovery.

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