Weekly outlook
DURING the week, the market closed lower after downward movement in DSEI mainly due to decline in share price of Kenyan listed companies.
The total market size decreased by 159.24bn/- while the domestic market slightly increased by 13.06bn/- during the week thanks to increased CRDB share price by 3.70 per cent.
In the coming week, we anticipate improvement in the stock market performance particularly improvement in share prices and turnover as market recoup and as foreigner’s comeback 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, NICOL and CRDB will maintain their activeness in the market with the lower volatility in their share prices.
While in the commercial services industry Swissport is expected to remain active with limited expectations on the price movement.
In midweek we expect 15 years Treasury bond auction to be held by the central bank. We may see oversubscription of the Treasury bill 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 4.00 per cent to 5.00 per cent with slight volatility in the high and low rate.
The BourseTotal Market Capitalization decreased by 1.06 per cent to 14.84tri/- from 15.00tri/-in the previous week, while Domestic Market Capitalization increased by 0.14 per cent to close the week at 9.10tri/- from 9.09tri/- previous week.DSEI moved downward by 1.06 per cent to close the market at 1,788.33 points from 1,807.50 points in the previous week.On another note, TSI index moved upward slightly by 0.14 per cent to close at 3,466.81 points from 3,461.84 points, B&F Index moved upward by 0.78 per cent to close the week at 2,149.01 points from 2,132.39 points in the previous week, while Commercial services index and Industrial & Allied index remained flat to close at 2,356.49 points and 4,743.61 points respectively.Companies whose share price decreased are as follows; EABL decreased by 2.29 per cent to 3,420/- from 3,500/-, JHL decreased by 4.08 per […]
