JAN 24, 2018: BOND COMEBACK AT NAIROBI SECURITIES EXCHANGE

After days with average daily trade, the bond market today, Wednesday, January 24, 2018 at the Nairobi securities exchange witnessed a major comeback with 55 deals worth Ksh 4.58bn compared to Ksh 1.77bn in 46 deals yesterday.

There wer no deals in corporate bonds but activities in other sectors of the bond market picked up remarkably with Sell or buy recording deals in 4 stocks worth Ksh 1bn total and 29 infrastructure bonds nominally valued below Ksh 50m witnessed deals led by Ksh 48m each in two of them.

As usual, Government fixed income bond of above Ksh 50m nominal value recorded top traded value as 14 of these stocks recorded deals paced by Ksh 1.499bn worth of deals in 5year fixed income issued in 2016 at 13.1129% due September 2021.

At the equities market however, trading was down although investors interest remain high leading to increase in number of deals from 1148 yesterday to 1171 despite the drop in both traded volume and value.

Traded volume for the day dropped to 19m shares from yesterday's 29.68m while traded value declined from Ksh 1.035bn to Ksh 677.06m.

Of the 64 listed companies, only 11 had no deals in their shares, quite an improvement on recent trends despite the volume drop and the banking sector combined to pace the market with Ksh 350m traded value or 52.24% of the day's total.

Three bank groups accounted for the bulk of this sectoral traded value: Equity Group recorded deals for 3.05m shares at between Ksh 42.50 and 43 per share worth Ksh 129m; Cooperative bank, down Ksh 0.05 per share, witnessed deals for 4.213m shares worth Ksh 70.5m and KCB Group, down 3.37% or Ksh 1.50 per share, closed with deals for 1.473m units worth Ksh 63.6m.

However, on the individual level, Safaricom led the market as 6.56m of its shares changed hands at between Ksh 29.50 and 29.75 per share worth a total of Ksh 193m.

No other equity had deals for above 1m units but East African Breweries drove the manufacturing sector to Ksh 85.7m or 12.8% of market total traded value as it recorded deals for 338,200 shares at between Ksh 240 and 248 per share.

The all share index dropped by 0.99 points to 179.44 after yesterday's rally principally as 29 price drops were recorded as against 10 gains for the day.

The major drops include Ksh 9 per share decline by BOC Kenya as it reached Ksh 100 and closed there for the day; Kenya Orchards own decline by Ksh 5 per share as it closed at Ksh 90 per share and Nation Media's Ksh 3 per share drop after hitting day high of Ksh 106; low of Ksh 101 before closing at Ksh 103 per share most likely as a result of news of imminent sack pf some of its staff.

The price gainers were led by British American Tobacco, up Ksh 4 per share as it settled at Ksh 780 per share; Standard group with Ksh 1.25 per share gain and Williamson Tea up Ksh 1 per share.

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