Foreign investors at the Nairobi Securities Exchange (NSE) returned a net buying position at the market last week, snapping a two-week selling run that has seen them cashing in on stocks whose prices had gone up ahead of book closures on dividends.
Market data from the NSE showed that there was a net foreign inflow of Sh47.8 million last week, compared to net outflows of Sh214.7 million the previous week.
They, however accounted for a smaller share of the equity turnover at the market last week, at 58 per cent compared to 67 percent the previous week, as local investors raised their activity at the market.
“Foreign investors turned bullish in the week, accumulating on EABL, Equity Group and Safaricom while exiting on KCB Group and Stanbic. We expect the activity by the offshore investors to remain heavy on the blue chip names,” said Genghis Capital in a market note.
Total traded turnover at the NSE last week stood at Sh1.7 billion, down 47.8 percent from the previous week, with Safaricom accounting for the biggest share of traded turnover at 45.9 per cent.
The telco is now trading ex-dividend, having closed its books on a Sh0.45 cents per share on March 5.
The benchmark NSE20 share index ended the week 0.6 percent higher at 1,933.6 points, while the more inclusive NSE All Share Index was up three percent to close the week at 166.94 points.
Investor wealth, as measured by the NSE’s market capitalisation, rose by Sh74.8 billion during the week to hit Sh2.565 trillion.
Investor attention in the next few weeks will likely be on banking stocks, with lenders now announcing their full year earnings results that are expected to show the extent of the profitability hit caused by the Covid-19 disruptions on the economy.
