- The All Share Index retreated by 1.1% partly attributed to price decline on Safaricom (-1.9% to KES 29.10). Activity on the counter accounted for 48.1% of the day’s traded value. The NSE 20 Index however gained by 0.2% to close the day at 1,949.12. Equity turnover increased by 266.6% to KES 553.4 million as the number of shares traded increased by 257.6% to 22.2 million. Foreign investors were net sellers with 92.5% of the day’s sales against 49.6% of the day’s purchases with notable foreign sell side activity on Safaricom and EABL.
Government opts for a Phased Re-opening
The government has lifted restrictions on movement in and out of the Nairobi Metropolitan Area, Mandera and Mombasa counties as part of a phased reopening of the country.
However, the nationwide dusk to dawn curfew (9:00 PM – 4:00 AM) and restrictions on public gatherings will remain in place for another 30 days.
According to the government, although the irreducible minimums were yet to be met, the country had reached a reasonable level of preparedness to allow a phased reopening.
The spread of the disease will be monitored over the next 21 days and should the situation worsen, the cessation of movement in the aforementioned areas will be reinstated.
Some of the other initiatives announced as part of the re-opening included (i) Phased reopening of places of worship with only 100 participants allowed and restriction of congregants under 13 years or above 58 years and other vulnerable/at risk groups (ii) Resumption of local air travel on 15th July while international air travel shall resume from 1st August 2020 (iii) A notification on the resumption of the 2020 Academic calendar to be given by 7th July 2020.
The easing of the travel restrictions is a welcome move for households and businesses. We note that this however increases the risk of spread of the disease.
Long Term Buy- KCB, Equity, Absa, Stanbic, NCBA
Sell- Stanchart, Bamburi, HF