Net foreign outflows at the Nairobi bourse eased in November
compared with October largely on increased investment in banking stocks
following the removal of interest rate caps.
Foreign
investors moved a net of Sh727.36 million (where $1 is equivalent to
Sh102.59) from the Nairobi Securities Exchange (NSE), 43.05 percent less
than nearly Sh1.28 billion in October, SIB analysts showed in their
monthly report.
November marked the second month in a
row that NSE has posted net foreign capital outflows in line with a
trend being witnessed elsewhere in emerging and frontier markets.
Foreign investors were, however, in net buying position in the first
(Sh785.84 million), second (Sh1.32 billion) and third quarter of the
year (Sh121.06 million), despite sell-offs in the first two months of
the fourth quarter.
Safaricom
whose
shares traded at an average of Sh29.25 a unit, a 1.7 percent drop
compared with a month earlier, topped the list of stocks with net
foreign sell-offs at nearly Sh1.13 billion.
The NSE’s most valued firm was followed by East African Breweries
where net outflows stood at Sh230.09 million, BAT Kenya (Sh115.83 million), Britam (Sh58.59 million) and NCBA
(Sh23.95 million), according to SIB data.
KCB Group
, on the other hand, experienced the
highest foreign net buying with Sh511.84 million in the month after the
three-year ceiling on loan interest charges was scrapped following a
miscellaneous amendment to Banking Act.
DTB
came second with a net foreign inflow of Sh157.73 million followed by Co-operative Bank (Sh109.60 million), Centum (Sh64.23 million) and Stanbic Holdings
(nearly Sh36.68 million).
The
market had posted a 0.4 percent gain in the first quarter, but lost 7.5
percent and 7.6 percent in second and third quarter respectively.
During
the month, the stock market slipped back into the red after the
benchmark NSE-20 Share Index shed off 0.9 percent compared with 8.7
percent gain in October.
“The decline was driven by
losses in large-cap bank stocks … owing to the market re-adjusting after
the bullish trend in October owing to expectations of the repeal of the
interest rate cap,” analysts at Cytonn Investments said in a monthly
note to investors.
NCBA Group shares suffered the
biggest slide on its price at 10.7 percent followed by Barclays Bank of
Kenya (6.4 percent), Standard Chartered (5.8 percent) and KCB Group (3.4
percent).
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