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Nairobi bourse begins upward move

NAIROBI, Kenya, Aug 17- The Nairobi Stock Exchange (NSE) closed in positive territory on Tuesday with most stocks closing the day higher than Monday’s close.

Although it is too soon to proclaim stock market recovery, analysts concur that it is positive if considered in light of significant losses made over the last two weeks.

“The NSE 20 Share Index edged 0.16 percent higher to close at 3,507.3 points with foreign turnover declining to 55.6 percent of total equity turnover compared to 75.8 percent on Monday,” explained Genghis-Capital Research Analyst Renaldo D’souza.

The last time that the NSE traded below the 3,500 mark was on January 15 this year.

Equally positive was market capitalisation which closed at Sh981.5 million representing a 0.14 percent increase in value.

The NSE has lost 9.17 percent in terms of shareholder value over the last one month, a reflection of stock price declines over the period.

Top Gainers in terms of price appreciation were TransCentury Ltd which rose 5.61 percent on a volume of 82,000 shares from three deals and Eveready East Africa Ltd which closed 5.41 percent higher than on Monday.

On the losing end were Standard Group which shed 8.70 percent and E.A Cables which closed 1.32 percent lower having already lost 5.42 percent on Monday.

Although foreign investors have continued to dominate the market in the last few weeks, their turnover on Tuesday declined to 55.6 percent of total equity turnover.

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The net foreign turnover inflows (buys minus sales) were Sh38.2 million a significant increase from a net outflow of Sh9.1 million on Tuesday indicating heavy activity on the buy side.

Several counters witnessed foreign investor activity solely on the buy side with the most notable being Access Kenya, Athi River Mining, Bamburi Cement, Kenya Airways and Nation Media Group.

Going forward, Mr D’souza expect the market to maintain its momentum as bargain hunters and most notably foreign investors take up trading positions in time for earnings releases on East African Breweries Ltd and Kenya Power.

Further, they expect most foreigners to appear on the buy side with significant activity on counters such as Safaricom, KCB Group and Equity Bank expected.

Stocks to watch on Wednesday include E.A Cables which has lost 6.7 percent since Friday last week and is increasingly becoming attractive and Kenya Power which along with Mumias Sugar, Kengen and EABL are expected to announce their results later this month

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