Respite for investors as NSE stocks gain in two sessions

Money Markets

A staff of the Nairobi Securities Exchange take notes at the Exchange in Nairobi. PHOTO | FILE 

By CHARLES MWANIKI, cmwaniki@ke.nationmedia.com

The stock market closed the week on a high rebounding above the 4,400 points to hand investors a respite from a bearish run that has slashed share valuations.

The last two trading sessions on Thursday and Friday saw the market gain a total of 98 points to close the week at 4,415 points, with East Africa Breweries Ltd and Equity Holdings boosting the index.

Week-on-week turnover rose to Sh6.1 billion from Sh3.4 billion posted the previous week, partly due to increased local investor participation in the two sessions.

“The market continued its climb against adverse market conditions, as it closed the day with significant gains. Market performance showed that conditions improved, as the number of stocks that advanced, 28, outweighed the number of stocks that declined, 14,” said Genghis Capital analysts in Friday’s market report.

Among the big cap counters, Equity Bank was the most impressive returning a week-on-week gain of 10.2 per cent to Sh43.25 while EABL gained 3.4 per cent to Sh304.

Both companies released financial results almost within the week, with Equity half-year net profit rising by 11.8 per cent to Sh8.5 billion and EABL’s full year to June profit rising 40 per cent to Sh9.6 billion.

Other gainers during the week included CIC Insurance which was up 9.3 per cent to Sh7.65 and National Bank of Kenya up 8.5 per cent to Sh20.50.

On the losing end was Unga Group shedding 11.1 per cent to Sh40, followed by Uchumi and Flame Tree group which were each down 10.3 per cent to Sh6.50 and Sh7 a share respectively.

The bond market witnessed an upswing in activity, with bonds worth Sh9.11 billion transacted compared to Sh5.48 billion posted the previous week.