Browsing: Market trends

The release of first quarter results (1Q21) in the banking sector has been pertinent in the bourse in this review period. The spotlight was on KCB and Equity Group which received different investor reactions that saw foreigners exiting KCB and accumulating Equity.  

Equity Group reported an impressive 63.8% y/y rise in Earnings per Share (EPS) to KES 2.3. This performance was on the back of substantial decrease in loan loss provisions (-59.3% y/y) coupled with 28.4% y/y rise in Net Interest Income (NII). Interest expense on customer deposits however, weighed down on NII, rising 63.5% y/y to KES 4.2Bn. Non-Interest Revenue (NIR) grew 30.7% y/y to KES 10.9Bn. Borrowed funds went up 68.2% y/y to KES 88.4Bn on acquisition of development finance institution (DFI) funding to boost liquidity that stands at 60.6%. The Group’s subsidiaries in Rwanda and Uganda now deliver above the cost of capital returns giving a positive …

Bearish sentiment protracts continues being the dominant theme in the Kenyan equities markets as uncertainty clouds economic and business recovery from the effects of the ongoing global Covid-19 pandemic. On a year-to-date (YTD) basis, the Nairobi Securities Exchange 20-Share Index (NSE-20) and Nairobi Securities Exchange All Share Index (NASI) have posted negative returns of 24.2% and 14.1%, respectively. Notable out-performers YTD are Barclays ETF Gold (+22.1%), a security whose value is pegged on the value of gold (a safe haven asset); Kenya Airways (+39.5%) on a recent price rally; and Carbacid Investments (+12.0%). On month-to-date basis (MTD), there have been outstanding outperformers (Flame Tree Group 56.4%, Britam +47.3% and Kenya Power +30.9%). The key index counters, in particular in the banking sector, have retreated sharply, with Equity Group and KCB Group down 34.9% and 35.2% YTD, respectively. 

Also Read: Africa’s four MEGA TRENDS that are overcoming the global pandemic

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