Analysis done by risk and research firm Stratlink Africa shows that on average foreign investors’ daily purchases stood at Sh424 million ($4.1 million) in May, a 9.7 per cent drop month-on-month.
The net sales were spread across various market segments, with the biggest net outflow recorded on the East African Breweries counter at Sh672 million, followed by Safaricom at Sh610 million.
Foreign investors turned net sellers at the NSE #ticker:NSE in May, selling off large cap stocks whose prices were on the rise during the month.
The foreigners took out a net of Sh1.9 billion ($18.1 million) last month, according to data compiled by Standard Investment Bank.
They had recorded a net inflow position of Sh433 million in April, having overall retained a net inflow position since the beginning of the year.
Analysis done by risk and research firm Stratlink Africa shows that on average foreign investors’ daily purchases stood at Sh424 million ($4.1 million) in May, a 9.7 per cent drop month-on-month, while their sales were 13.1 per cent higher compared to April at Sh506 million ($4.9 million).
“This is a likely indicator that the activity that shaped April 2017 was a reflection of investors taking positions ahead of the earnings season… this trend suggests there is likely to be a deceleration of the rally witnessed over the last two months in the month ahead,” said Stratlink in its African markets update for June 2017.
It also points to some profit taking on the big gainers during the rally at the NSE in the month, given that foreign investors had dominated the buy side of the market in the previous one year. The NSE 20 share index gained nine per cent last month, while the NSE All Share Index was up 11.3 per cent.
The net sales were spread across various market segments, with the biggest net outflow recorded on the East African Breweries #ticker:EABL counter at Sh672 million, followed by Safaricom #ticker:SCOM at Sh610 million.
The Kenol Kobil #ticker:KENO counter recorded net outflows of Sh341 million, followed by that of Bamburi #ticker:BAMB at Sh272 million, Umeme at Sh227 million and Equity Holdings #ticker:EQTY at Sh73 million.
Kenya Commercial Bank #ticker:KCB, however, bucked the trend of net foreign outflows on large cap stocks, recording the highest net inflow last month at Sh343 million.
It was followed by Crown Paints #ticker:BERG at Sh44 million and Centum #ticker:ICDC at Sh41.3 million.
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Note: The results are not exact but very close to the actual.
