Weekly outlook
DURING the week, the market closed lower after downward movement in DSEI mainly due to blended share price movement of Kenyan listed companies and local listed companies. The total market size increased by 19.45bn/-while the domestic market slightly decreased by 0.34bn/-during the week.
In the coming week, we anticipate improvement in the stock market performance particularly improvement in share prices and turnover as market recoup amidst coronavirus pandemic as well as foreigners started to swamp in the market.
The market performance to be maintained by the active local counters in terms of volume, turnover, and price movements in the bourse. In the industrial and allied segment, TPCC and TBL is anticipated to remain active during the week while in the banking, Finance, and Investment segment DSE and CRDB will maintain their activeness in the market with the lower volatility in their share prices.
During the week CRDB shareholders approved Dividend of 17/-per share and DCB shareholders approved Dividend per share of 5.4/-for the year ended December 2019. During the AGM which was conducted virtually unveiled plan to open a subsidiary in the Democratic republic of Congo.
In midweek we expect 10 years Treasury bond auction to be held by the central bank. we may see oversubscription of the treasury bond due to the higher appetite for government securities. Furthermore, the Government securities yield curve may continue to remain normal, and weighted average yields are expected to decline, this indicates low funding cost by the government.
In the interbank money market, notwithstanding the decrease in the Weighted average rate (WAR), during the previous week, we still anticipate that WAR to be within a range of 4.50 percent to 5.00 percent with slight volatility in the high and low rate.
The Bourse
Total Market Capitalization increased by 0.31 per cent to 15.20tri/-from 15.22tri/-in the previous week, while Domestic Market Capitalisation remained flat during the week to close the week at 9.17tri/-.
DSEI moved downward by 0.13 percent to close the market at 1,831.96 points from 1,834.31 points in the previous week. Furthermore, TZS index moved downward slightly by 0.004 percent to close at 3,486.86 points from 3,486.99 points, B&F Index moved downward by 0.02 percent to close the week at 2,165.62 points from 2,166.06 points in the previous week, while Industrial & Allied index and Commercial services index remained flat to close at 4,778.72 points, and 2,356.49 points respectively. Companies whose share price decreased are as follows; EABL […]