IN the coming week, the market stance remains firmer, investors participation is likely to improve especially local investors, this indicate that the market will remain sturdier and sound.
Top active counters such as CRDB, DSE, TPCC, TBL and NICOL to continue to overshadow the next week’s transactions and turnover.
While VODA transaction volume is expected to decline as investors especially institutional investors will hold looking to gain from the announced dividend, while transactions to be influenced by the retail investors sell.
During the week, the market closed firmer on Friday after TSI closed up by 0.24 per cent, thanks to TPCC share price increase, while market turnover decreased to 1.95bn/- from 3.36bn/-.
The decline in the DSEI was due to decrease in share price of cross listed securities such as EABL and KCB. The total market size slightly decreased by 20.62bn/-, while domestic market capitalization slightly increased by 21.59bn/-.
In mid week we expect 5-year Treasury bond auction to be held by the central bank.
We may see undersubscription of the bond, as the yields decline shied out investors who are looking to invest in short-term and medium-term instruments.
The yields in short-term and medium-term government instruments are expected to increase, with undersubscription expectation if yields will continue to decline further.
Furthermore, the Government securities yield curve will continue to remain normal, with expectations in the yields on treasuries will improve after reaching a resistance level especially short-term and medium-term instrument.
In the interbank money market, notwithstanding the decrease in the weighted average rate (WAR) during the previous week, we still foresee that WAR will continue to increase and to be within a range of 3.50 per cent to 4.00 per cent with slight volatility in the high and low rate.
The BourseTotal Market Capitalization slightly decreased by 0.14 per cent to 15.06tri/- from 15.08tri/-in the previous week, while Domestic Market Capitalization increased by 0.24 per cent to 9.02tri/- from 9.00tri/-in the previous week.During the week DSEI decreased by 0.14 per cent closed the week at 1,814.35 points from 1,816.83 points in the previous week, while TSI increased by 0.24 per cent to close the week at 3,436.28 points from 3,428.06 points in the previous week, and Industrial & allied index increased by 0.40 per cent to close the week at 4,814.39 points from 4,795.24 points.The B&F index and commercial services index remained flat at 2,179.00 points and 2,141.86 points, respectively.Companies whose share price decreased are as follows; EABL […]