Equity Market

  • The all-inclusive NASI share price index decreased by 1.63% from 128.41 to 126.32 during the week ending October 07.
  • The NSE 20 share price index decreased by 2.38% from 1717.68 to 1676.77 during the week ending October 07.
  • The NSE 25 share price index decreased marginally by 2.17% from 3102.05 to 3034.74 during the week ending October 07.
  • Market capitalization decreased from KES 2.001 trillion to KES 1.968 trillion in the week ended October 07.This was in line with NASI index that tracks the performance of the whole market. It is worthy to note that Safaricom Plc market capitalization (Ksh 991.619 billion) currently accounts for 50.39% of NSE market capitalization.
  • Volume of shares traded increased by 78.45% to close the week at 101.00 million, compared 56.60 million recorded in the previous week.
  • Equity turnover increased by 66.67 percent to Kshs 2.50 billion for week ended October 07 compared to KES 1.50 billion in the preceding week. Year to date shares worth Kshs 74.03 billion have been traded in the Nairobi Securities Exchange. It’s worthy to note that the NSE Plc makes 0.24% of equity turnover as equity trading fees which accounts for over 58% of its total income.
CORPORATE ACTIONS
COUNTERCORPORATE ACTIONDECLAREDBOOKS CLOSURE DATEPAYMENT DATE
Jubilee HoldingsInterim   DividendKES  1.0009-Sep-202211-Oct-2022
NCBAInterim   DividendKES  2.0015-Sep-202230-Sep-2022
EABLFinal  DividendKES  7.2515-Sep-202230-Oct-2022
BOC KenyaInterim   DividendKES  1.6030-Sep-202222-Oct-2022
Centum InvestmentFinal  DividendKES  0.58730-Sep-2022Not Disclosed

CORPORATE ANNOUNCEMENTS AND KEY EVENTS FOR THE LAST WEEK AND CURRENT WEEK

  • In the Treasury bills auction of October 06, the government sought to raise KES 24 billion but received bids totalling KES 26.40 billion representing a performance of 109.99% percent. Amount accepted amount to KES 19.06 billion compared to KES 6.65 billion last week.  Interest rate on 91-Day Treasury bill, 182-Day Treasury Bill and 364-Day Treasury bill was 9.036%, 9.639% and 9.905% respectively. The subscription rates across the three papers were 452.12%, 68.83% and 1.42% respectively.
  • The bond market reported increased activity with bonds worth KES 15.00Bn transacted compared to KES 13.90Bn registered the previous week.
  • The Central Bank of Kenya sought to raise KES 40 billion by auction of two reopened bonds FXD1/2017/10 and FXD1/2020/15 in 5 October 2022. Bids received for the bonds amounted to KES 18.80 billion representing a 47.00% of which the CBK accepted KES 15.12 billion representing an acceptance rate of 80.43% clearly indicating the resolve of the CBK to lower government borrowing costs. The average interest rate for bonds reopened was 13.369% for bond FXD1/2017/10 and 13.970% for bond FXD1/2020/15.
  • The National Treasury plans to raise KES 60 Billion from auction of two reopened bonds FXD1/2017/10-(4.9 years) and FXD1/2020/15-(12.3 years) and a new bond FXD1/2022/25-(25.0 years) in October 2022 in two tranches. The reopened bonds FXD1/2017/10-(4.9 years) and FXD1/2020/15-(12.3 years) are currently paying interest of 12.966% and 12.756% respectively while for new bond interest will be market determined. The Period of sale for bond FXD1/2017/10 AND FXD1/2020/15 is from 21 September 2022 to 04 October 2022. The Period of sale for bond FXD1/2022/25 is from 21 September 2022 to 18 October 2022.
  • As per quarter four data released by the Communication Authority of Kenya, mobile money subscriptions stood at 37.22 million for period 1 April to 30 June 2022.The number of mobile money agents stood at 301,890 for the period an increase of 2.83% compared to 293,589 for period 1 January to 31 March 2022. Total value of transactions transacted on MPESA totalled KES 7.72 trillion for period 1 April to 30 June 2022 an increase of 41.43% compared to KES 5.46 Trillion transacted on M-PESA for the period 1 January to 30 June 2021.You’d expect ideally that for the first half of Safaricom financial year 2023 total value of MPESA transactions will hit KES 15.44 trillion with M-PESA revenues expected to hit KES 58.97 billion for financial year 2022/2023. First half results are expected on Friday 11 November 2022 at 7.30 am.
  • As per CBK data, total money handled by mobile money agents totalled KES 677.36 billion for August 2022 ( a 15.49% as compared to KES 548.52 billion reported in August 2021), a decline of 6.25% from KES 722.52 billion handled in July 2022. Active mobile money subscriptions stood at 70.06 million in August 2022 from 71.58 million in July 2022. Mobile money agents increased from 309856 in July 2022 to 310450 in August 2022. Money handled by mobile money agents for the first 8 months of the year has totalled KES 5,239.96 billion compared to KES 4,442.14 billion handled for the first 8 months of 2021 an increase of 17.96%.
  • The government of Kenya spent KES 6 billion to buy back 60% of Telkom Kenya from Helios PE fund. This values the whole company at KES 10 billion. Based on transaction and bearing in mind.
  • Safaricom officially launched officially its operations in Ethiopia on Thursday 6 October 2022. At the same time Safaricom was granted permission to roll out mobile money services across Ethiopia. This is a significant development given the Ethiopian population of 120 million people with only 2% of them accessing mobile money services. Roll out of mobile money services also increases possibility that Safaricom Ethiopia operations in Ethiopia will break even in a period of less than 4 years since M-PESA services are capital light and high margin business. By launch date of 6th October 2020, Safaricom mobile subscribers had hit 200,000.Plans plans to roll out its services in 25 Ethiopian cities by April 2023 in order to comply with license requirement of covering at least 25% of Ethiopia.
  • The Bank of Uganda hiked its key Central Bank rate by 1% to 10%.This was an attempt to rein down inflation which stood at 10% for the month of September 2022.

LOCAL MARKET SUMMARY FOR WEEK ENDED 07 OCTOBER 2022

DetailsLAST PRICE 07/10/2022LAST PRICE 30/09/2022W-O-W CHANGE%
NSE 20 Index1676.771717.68-2.38%
NSE 25 Index3034.743102.05-2.17%
All Shares Index126.32128.41-1.63%
Equity Turnover in KES Billion2.501.5066.67%
NSE Market Capitalization in KES Trillion1.9682.001-1.65%
Volume of Shares Traded in Million101.0056.6078.45%
Bond Turnover in KES Billion13.6015.00-9.33%
USD/KES120.8500120.73240.10%
Murban Crude Oil (USD/BBL.) (06/10/2022)95.2188.547.53%
KENYA 2Y Treasury Bond Yield11.25011.342-0.81%
KENYA 10Y Treasury Bond Yield14.18914.1890.00%