Market Analysis: 30 September, 2016

The week ended on 30/9/2016 at the NSE with a market turnover increase by 71.3% to USD 8.2m (KES 830.3m), the NASI and NSE 20 also increased to 136.75 (+0.5%) and 3,243.21 (+0.8%) respectively.

However, local investors dominated trading, with a participation level of 62.1% and were net sellers in the market.

The top three traded counters accounted for 88.0% total market turnover.

Safaricom rose to be the top traded counter, its price notched up by 0.5% to KES 19.95.

KCB Bank and Equity Bank continued to surge to close the week at KES 28.00 (+3.7%) and KES 30.75 (+3.4%) respectively, both counters recorded high net foreign inflows.

Foreign investors were sellers of Co-op Bank (+2.1% to KES 12.35), DTB Bank (unchanged at KES 139.00) and Centum Investment (-1.9% to KES 39.50).

Trans-Century Ltd. was the top loser, closing the week at KES 6.55 (-9.7%) though on low volumes.

Unga Group Ltd. released its full year results this morning, the Company reported an EPS of KES 4.32 (-18.0%y/y) and profits after tax of KES 508.8m. Total turnover marginally increased to KES 19.7bn (+5.4% y/y), however operating profits declined by 10.7% y/y to KES 674.0m mainly attributed to higher distribution and administrative expenses incurred. The Company stated that production of maize flour and porridge reduced in comparison to the previous year, due to a shortage of quality maize grain in the second half of the year. The Company Board of Directors have announced a first and final dividend of KES 1.00 per share subject to shareholder approval at the upcoming AGM on 1st December 2016.

Atlas Support has increased its stake in BonanzaWin (Nigerian gaming company) through a share subscription and capital contribution into Equatorial Partners Ltd (EPL) which holds a 60.0% stake in Saerimner Ltd operating under the trading name “BonanzaWin”. Atlas has invested an additional USD 200,000 in EPL, to increase its shareholding to 13.5% from its initial 10.0% stake.