OCT 16 2017: CORPORATE BONDS ACTIVE AT NAIROBI SE.

For the first time in a very long while the corporate bond section of the Nairobi securities exchange bond market was today October 16, relatively active to contribute to 91.9% recovery in bond traded value to Kes 1.56bn.

Six corporate bonds witnessed deals worth a total of Kes 169.3m, indeed a very rare event since the year.

Top of the bill were deals for Kes 64m worth in EAB fixed income 14.17% redeemable in March 2022 ; Kes 52m worth in CBA fixed income 12.75% due 2020 and Kes 32m in NIC fixed 5 year note redeemable in 2019 issued at 12.5%.

Indeed, most sections of the bond market were active with sell or buy back chipping in deals in one stock for Kes 100m; and both stocks above and below Kes 50m nominal value recording deals too although as usual the lead value was in the above Kes 50m government bond category.

Thus, the bond market closed first trading day in week 42 with 53 deals compared to 35 deals with which it closed week 41 on Friday.

That way, corporate bond helped sustain smiles in otherwise rather very dry day at the equities segment where traded volume tumbled 71.6% to most likely year low of 7.24m and traded value also crashed by 76.2% to Kes 201.35m.

It was a unique that even mighty Safaricom with its top volume of shares trade able in the market recorded deals for less the one million shares (951,300 units at between Kes 24.50 and 25.25 per share worth Kes 23m or 11.74% of traded value).

It was such a dry day that only Banking sector's KCB witnessed deals for above 1m shares. A total of 1.505m shares changed hands in KCB group at between Kes 36.75 and 37.75 worth Kes 55.7m.

That meant that it accounted for above 50% of the Kes 111m leading traded value by the banks as all recorded deals led by KCB, then Equity group with deals for 943,100 units worth Kes 33m and Cooperative bank with Kes 10m worth involving 659,600 shares.

The manufacturing and allied sector contributed 15.27% to the traded value pot for the day as East African Breweries posted deals for 119,300 shares at between Kes 241 and 242 per share worth Kes 28m and British American Tobacco, down day high Kes 7.00 per share at Kes 800 per share recorded deals involving 600 units worth Kes 1.3m.

The  commercial and services sector was responsible for Kes 16m traded value or 8.37% of total especially as in a rare run, WPP Scan group recorded deals for 793,200 shares at between Kes 17.50 and 18 per share worth Kes 14m.

The market mood was bearish still with 23 price drops being recorded compared to 11 gains. Besides the gains were mostly on the low side and with limited impact on the market capitalisation basket that produces the All shares index daily.

Lead gain was Kes 3.00 per share by I & M Holdings which opened and closed the day at Kes 125 per share as against Kes 122 Friday close.

On the losers side, BAT's lead drop was followed by Nation Media's decline by Kes 3.00 per share as from Friday's Kes 110 per share it closed at Kes 108 after staying briefly at day high of Kes 109 per share.

In the end, the All shares index went down by 0.73 points to 158.52.

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