Login

Lost your password?

Sign Up

Register

Login

Login

Lost your password?

Register

Sunday, April 11, 2021
  • Home
  • Banking
  • Industry & Trade
  • Investing
  • Money Deals
  • Regional Markets
  • Tech & Biz
  • Countries
  • Opinion

Africa's
Investment
Gateway

The Exchange
  • Login
  • Register
Subscribe
This Month's Edition
Previous Editions
  • Home
  • Banking
  • Industry & Trade
  • Investing
  • Money Deals
  • Regional Markets
  • Tech & Biz
  • Countries
  • Opinion
No Result
View All Result
The Exchange
  • Home
  • Banking
  • Industry & Trade
  • Investing
  • Money Deals
  • Regional Markets
  • Tech & Biz
  • Countries
  • Opinion
No Result
View All Result
The Exchange
LOGIN

A cautiously positive tone sustained in February

The NSE-All Share Index and NSE-20 has edged up 4.3% and 0.9%, respectively, so far this year.

Opinion by Opinion
February 27, 2021
in Money Deals
0
stock-market

stock-market

Share on FacebookShare on LinkedIn

A cautiously positive tone that opened the year was sustained during the month with the market generally on the uptrend and market activity steadily picking up. The NSE-All Share Index and NSE-20 has edged up 4.3% and 0.9%, respectively, so far this year.

Prospects for improvement in business environment from the depths of 2020 are looking up with private sector activity as per data from the Stanbic Purchasing Managers Index (PMI) indicating an expansion in private sector activity during the month. With the optimism, investors are cautiously looking at the attractive valuations in the markets although inherent risks persist including economic recovery, cashflow constraints and heightened political activity with the likely upcoming referendum. 

Against the norm, blue chips are out-performers across the market so far this year. BAT Kenya (+16.3%), EABL (+15.1%), Safaricom (+10.4%) and Bamburi Cement (+9.6%) with a lone penny stock in the top gainers for the year (Nairobi Business Ventures at 17.8%). On the downside are Home Afrika (-16.7%), Standard Group Plc (-15.6%) and Sanlam Kenya (-12.7%) YTD. Most of the key banking sector counters are relatively at break-even so far this year, with Equity Group leading at +2.6%; KCB Group at -1.6%; and COOP Bank at 0.4%.  

Also Read: 2021 debt-to-GDP to reach 65% in emerging markets- IMF

Concerns about the pandemic especially with new fast spreading mutations, heightened political activity and uncertainty around the shape of business and economic recovery continues weighing heavily on risk asset pricing in the local market. The distribution of vaccines is off to a slow start especially in the developed countries while locally, news flow indicate vaccines will be available later this month than as previously indicated. On overall, we are seeing cautiousness across the market as investors weigh in on the shape and duration of business recovery across the different economic sectors. Investor skewness towards tech stocks and locally on Safaricom has driven the stock to all-time highs (KES38.00) on stream of positive innovative news and an interim dividend announced.  

Earnings season is set to continue for majority of companies. EABL noted strong recovery in the second half of last year (sales rose 53% compared to Jan–Jun 2020 period, which was heavily affected by pandemic-related lockdowns and restrictions) while KenGen released strong financial results on capacity additions and offered a cash dividend.  

Foreign investors dominated the first trading sessions of the year controlling 65.2% of total market activity, exiting the market to the tune of KES309Mn. Key counters by foreigners have been Safaricom, Equity Group, EABL, KCB and BAT Kenya, sustaining bullishness on Safaricom. We continue observing cautiousness by foreign investors on all other counters likely due to their expected weaker financial performance compared to Safaricom. Local investors are more cautious, mainly investing in government securities.  

 Also Read: PATIENT CAPITAL: How Donors Can Drive Economic Growth and Development in Africa Through a New Model of Philanthropy

Tags: Money dealsmoney marketspremiumstock marketsTrade
Opinion

Opinion

Opinions by contributors are views of respected thought leaders in the respective industries they operate in. The Exchange is a close partner with each of the various opinion contributors.

Related Posts

insurance- maritime.org
Corporate Suite

The case for peer-to-peer insurance 

February 27, 2021
Money
Personal Finances

Making Money Matter

February 27, 2021
InvestmentOwlLogo
Personal Finances

The Seven Deadly Investment Sins

February 12, 2021
Next Post
Leather

Leather Stakeholders for Coordinated Development of Policies  

EABC CEO Peter Mathuki speaking at Malaba OSBP

Its Kenya's turn at the helm of EAC trading bloc!

Regional economies remained relatively strong despite the pandemic.PIC (KPA)

Regional economies relatively strong despite pandemic  




This months edition

Features

Let’s market East Africa as a single investment destination- EABC Pic
Countries

East Africa Business Council fast tracking Congo to join EAC

by Kawira Mutisya
April 2, 2021
0

The opportunities for trade in the DRC are huge for the EAC—the value of goods the country imported in 2019 stood at US$6.6...

Read more
Ethiopian Airlines- The Exchange (aviation)
Aviation

Propelling Africa’s Aviation sector to greater heights  

April 1, 2021
Flowers (Kenya Flower Council- KFC)
Agribusiness

Kenya-UK trade deal—silver lining from a budding sector 

April 1, 2021
Kenya Automates import export processes to boost efficiency AFA-IMIS platform (Source TMEA)
Countries

Kenya Automates import/export processes to boost efficiency  

April 6, 2021
Women access to digital finance
Africa

Empowering women farmers to access financing 

April 1, 2021

News

Banking
Industry & Trade
Investing
Money Deals
Regional Markets
Tech & Biz
Opinion

Countries

Kenya
Tanzania
Uganda
Burundi
Rwanda
Southern Africa
Ethiopia

More

My Account
Contact us
Advertise
About us
Help Center

Subscribers Center

E-paper
Premium Stories
Education Rates
Corporate Subscriptions
Weekely Newsletter

  • My account
  • About us
  • Advertise
  • Contact
  • Privacy Policy
  • Refund Policy – The Exchange
  • Sitemap
No Result
View All Result
  • Home
  • Banking
  • Industry & Trade
  • Investing
  • Money Deals
  • Regional Markets
  • Tech & Biz
  • Countries
  • Opinion
  • Login
  • Sign Up
  • Cart

© 2021 The Exchange - Designed by Mediapix.

Welcome Back!

Sign In with Facebook
Sign In with Google
Sign In with Linked In
OR

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Sign Up with Facebook
Sign Up with Google
Sign Up with Linked In
OR

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In

We hope you enjoyed your last Free Premium Article

Support Quality African Journalism and subscribe for less than $4.00 per month for unlimited access.

3 OUT OF 3
FREE ARTICLES FOR THIS MONTH

SUBSCRIBE NOW

We hope you enjoyed your third Free Premium Article

Support Quality African Journalism and subscribe for less than $4.00 per month for unlimited access.

3 OUT OF 3
FREE ARTICLES FOR THIS MONTH

SUBSCRIBE NOW

We hope you enjoyed your second Free Premium Article

Support Quality African Journalism and subscribe for less than $4.00 per month for unlimited access.

2 OUT OF 3
FREE ARTICLES FOR THIS MONTH

SUBSCRIBE NOW

We hope you enjoyed your first Free Premium Article

Support Quality African Journalism and subscribe for less than $4.00 per month for unlimited access.

1 OUT OF 3
FREE ARTICLES FOR THIS MONTH

SUBSCRIBE NOW

Sign up to The Exchange Africa’s Newsletter and access Africa’s the latest investment trends, commentary and exclusives on the Continent. Sign up and access 5 free Premium articles!

Support Quality African Journalism!