Blue chip shares price fall pushes NSE further to record low
An investor at the Nairobi Securities Exchange. The main index fell below 4200 psychological barrier at 4171.35 points, the lowest level to which the exchange has sunk this year. PHOTO | FILE
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The main index fell below 4200 psychological barrier at 4171.35 points, the lowest level to which the exchange has sunk this year.
Standard Investment Bank (SIB) analysts said foreign investors were net sellers during the session.
The losses came as the global markets continued to lose value following economic troubles in China. The Asian economic giant cut interest rates to stem the tide, but markets only reacted temporarily and continued to fall Wednesday.
Nearly all the 20 counters that make up the main Nairobi Securities Exchange (NSE) Index lost value Wednesday pushing the bourse down for the seventh straight session.
The main index fell below 4200 psychological barrier at 4171.35 points, the lowest level to which the exchange has sunk this year.
Standard Investment Bank (SIB) analysts said foreign investors were net sellers during the session.
Of the 20 counters that constitute the index, only KenolKobil and CfC Stanbic share escaped unscathed as they maintained the prices at which they averaged the previous day. CfC Stanbic and KenolKobil traded 351,000 and 881,200 shares at prices of Sh90 and Sh8.50 respectively.
The losses came as the global markets continued to lose value following economic troubles in China. The Asian economic giant cut interest rates to stem the tide, but markets only reacted temporarily and continued to fall Wednesday.
On the NSE, the biggest loser among the blue chips was East African Breweries (EABL), down 3.9 per cent, followed by Safaricom that slid 3.6 per cent. Barclays Kenya lost 3.0 per cent of its value while KCB Group was down 2.8 per cent.
Buoyed by the new appointment of Julius Kipng’etich as new CEO, Uchumi Supermarkets was the biggest gainer at 4.0 per cent to hit Sh7.75 a share. Dr Kipng’etich previously worked as the chief operating officer at regional lender Equity Bank and also as chief executive at the Kenya Wildlife Service.
“Up 4.0 per cent, Uchumi was the top gainer on local investor demand after the board appointed former COO of Equity Bank, Julius Kipng’etich, as the new CEO,” noted analysts at SIB.
Other gainers were Flame Tree Holdings at 1.4 per cent, Longhorn Publishers at 0.8 per cent and Kenya Re at 0.3 per cent. Out of the 64 listed companies only the four companies recorded price gains Wednesday.
“With only four counters recording price gains, the NSE 20 Index and the NASI shed 1.68 per cent and 2.36 per cent respectively — seventh consecutive session of declines,” said SIB.
The SIB analysts further noted that equity turnover surged 106.9 per cent on the back of increased volumes traded on Bamburi and EABL, jointly accounting for 38.1 per cent of total activity.
“Foreign investors were net sellers with participation at 60.5 per cent compared to 74.5 per cent in the previous session,” noted SIB.
All banks were on a downward momentum with NIC Bank closing at a 2015 low of Sh44.50.
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