NOV 22, 2018: RARE SAFARICOM AT NAIROBI SECURITIES EXCHANGE

On Thursday, November 22, 2018, the Nairobi Securities Exchange witnessed a very rare event: Trading of less than 1m shares of Safaricom in one day.

The company is by far the highest weighted one in the market with issued share capital available for trading unmatched by any other. Hence, it was more the norm for Safaricom to record deals for not less than 1m each day.

However, on Thursday Safaricom recorded deals for only 683,000 shares at between Ksh 23.75 and 24 per share worth N16.2m while closing firm and so, having no role in the 0.17 points rally by the All share index to 144.20.

But it did lead to dive in trading volume from 16.730m shares to 7.008m and in traded value to Ksh 130.757m, a new low from Ksh 499.168m.

The ASI rally was driven more by Ksh 35 per share jump in the share price of British American Tobacco as it found and closed at Ksh590 per share compared to Ksh 555 previously.

There were other major price gains as well that led to the rally in spite of dominant number of price drops. Williamson Tea rose by Ksh 10 per share ; East African Breweries topped up Ksh 2 per share and Ksh 1.50 per share increase by Nation Media.

On the other hand, Bamburi Cement paced the crowded decline scene with Ksh 2 per share drop to close at Ksh 143 per share from day high and previous day's Ksh 145 per share.

What's more, none other declined above Ksh 1 per share with the closest being Total Kenya's Ksh 0.50 per share drop.

With Safaricom hitting such low volume, the onus fell on the Banking sector to fill the gap. It did partially recording Ksh 75.6m or 57.89% of traded value as NIC Group closed with equally rare deals for 2.087m of its shares exchanging for Ksh 46.6m and KCB Group chipped in Ksh 15.6m from deals for 403,700 units.

The only other major contributor to traded value was the Manufacturing sector with Ksh 18.2m or 13.9% led by EAB as 106,400 of its shares were sold for Ksh 17.2m.

At the Bond market, there was a slight drop in traded value to Ksh 2.3bn compared to Ksh 3.1bn the previous day.

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