MAR 6, 2018: BAT, JUBILEE DOWN; ASI UP AT NAIROBI SE

On the surface, what may look strange occurred today at Nairobi Securities Exchange as two major  weighted equities: British American Tobacco (BAT) and Jubilee Holdings closed down by Ksh 7 per share each but the All share index rose instead by 0.11 points to 181.02.

Sure, there were more price gains ( 19) than drops (16) but the point was that compared to the drops in those two equities, only Standard Chartered Bank weighted relatively high too, rose by Ksh 5 per share to come close to the leading drops recorded.

Hence, with top weighted Safaricom closing firm once again, it should have been easier for ASI to head downwards with the duo.

It didnt but that was because Standard Chartered Bank found good support from equities like KCB Group and Bamburi Cement which feature among the market's top 10 by market capitalisation.

On the other hand, only BAT and Cooperative bank were among the top 10 by capitalisation amongst the day's price losers because Jubilee features amongst the middle weighted equities despite being among high priced equities.

Equities with leading market capitalisation were Safaricom, East African Breweries, Equity Group, KCB Group and Cooperative bank and the last two closed in opposite directions while the first three closed firm.

BAT closed at new year low of Ksh 700 per share yesterday compared to previous low of Ksh 750 and it actually hit day low of Ksh 680 per share before rallying a little to close at Ksh 683 per share today.

On the other hand, Jubilee touched new year high of Ksh 550 then slipped to day low of Ksh 505 per share before closing at Ksh 522 per share, down on yesterday,s Ksh 529 per share. The support from Coopeerative bank was marginal as it dropped only Ksh 0.15 per share.

In contrast, the leading price gainer SCB, hit day high of Ksh 212 then eased to close at Ksh 210 per share, which was still robustly higher than yesterday,s Ksh 205 per share. KCB Group gave good support by closing up by Ksh 0.75 per share and more importantly, Bamburi Cement rose by Ksh 2 per share as well.

Trading was down as traded volume dropped to 19.4m shares from yesterday's 45.44m shares but traded value did not drop that fast as it eased to Ksh838.05bn from Ksh963.4bn.

The gentle drop in traded value resulted from major trades in rarely traded and high priced equities like BAT, Total Kenya, Diamond Trust bank; Nation Media and rarely traded but medium priced ones like WPP Scan Group; Barclays Bank and HF Group.

Top trade was in Safaricom as 7.543m shares changed hands at between Ksh 29.25 and 29.75 per share worh Ksh 222m or 26.53% of market total traded value.

But the banking sector chipped in 48.5% of traded value or Ksh 407m as Equity group recorded deals for 3.84m shares at between Ksh 46.50 and 47 per share worth Ksh 179m; KCB, up 1.56% or Ksh 0.75 per share witnessed deals for 2.549m shares worth Ksh 124m and Diamond Trust Bank chipped in Ksh 70.7m in deals involving 339,000 shares.

In spite of the traded volume sharp drop though, investors interest remained high as 1405 deals were struck compared to 1316 deals yesterday.

The bond market recovered a little to record Ksh 2.52bn traded value in 55 deals compared to 41 deals worth Ksh 1.28bn yesterday.

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