Wednesday, the NSE market was vibrant with the total shares traded growing by 114.38% to KES 746.43Mn compared to yesterday’s trading influenced by the high foreign activity in KCB, Equity and Safaricom. Most share prices increased resulting in a rise in the NSE indexes.
Top Gainers/Losers
Trancentury share had the highest growth rising by 10% to 7.70. Standard share grew by 6.52 to close at 21.25 while KenyaRe grew by 5.22% to close at 19.15. On the flip side, the top loser was Sameer droping by 7.02 to close at 2.65. Stanbic share price declined by 6.45% to close at 58.00 and Home Africa lost 5.56% to close at 0.85.
Marshalls E.A to Delist from NSE
In the Automobiles sector, Marshalls E.A is set to delist from the NSE on June 19 leaving only 2 companies in that sector. Global Ltd, which owns 13.9% of the auto dealer, offered to buy out minority investors who do not wish to remain in an unlisted company. The offer price of KES 10.75 represents 25% premium to the 6 month VWAP price of KES 8.58. The loss making firm, in the year ended March 2016, registered a net loss of KES 17.4Mn lower than the KES 20.4Mn in the previous year.
CBA to Facilitate Trading of 3-Year Government Bond
CBA Group agreed to be a market maker for the country’s debut mobile phone based bond guaranteeing investors an exit whenever they need it. The 3-year government bond which raised KES 150Mn started trading yesterday on the NSE. The lender offered the best price package to the treasury on the cost of providing liquidity for the paper ahead of KCB. KCB offered a 3% compensation rate on the value of any bond it purchases and an attached fee of 0.5% for guaranteeing the offer while CBA offered a lower rate of 0.3% without any additional compensation. KCB failed to agree with the treasury on the cost because their offer was equal to what CBK gets when it buys bonds from an investor as buyer of last resort.
Bonds:
The bond market saw a decline in activity with 19 deals against 53 deals of bonds worth KES 0.82Bn.This was a 39.89% drop from 1.36Bn.
Foreign Currency
The Kenya Shilling improved slightly against key foreign currencies
Yesterday Today Change
Ksh/$ 103.45 103.42 0.03
Ksh/£ 128.62 128.59 0.03
Ksh/€ 109.79 109.74 0.05
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