- The All Share Index retreated by 0.8% to close at 137.68. We attribute this to price declines in large cap counters, notably EABL (-4.6% to KES 162.50), Equity (-1.1% to KES 34.70) and Safaricom (-0.9% to KES 28.65). This was on the back of foreign sell-side activity.
- Overall, foreign investors were net sellers with 84.4% of the day’s sales against 31.7% of the day’s purchases. NSE 20 also marginally eased by 0.5% as majority of the counters recorded prices declines. Equity turnover increased by 41.7% to KES 359.0 million as the number of shares traded increased by 82.0% to 15.5 million. Top mover of the da was Safaricom with 8.3 million shares traded (66.4% of the day’s traded value).
Britam Targets Retail Clients in Asset Management Growth
Britam Group is targeting the retail sector with an aim to grow its asset management business under its subsidiary Britam Asset Managers.
According to management, the retail sector offers higher margins and will complement revenues from its institutional clients where margins are low.
The group’s asset management subsidiary offers clients investment advisory and fund management services. The subsidiary invests clients’ savings and pensions over time at a commission.
Assets under the subsidiary are stated to have been growing; primarily driven by pensions and collective investments, however margins remain thin.
We note that with reduced institutional margins it is important that asset management firms are innovative and we opine that this is a positive step for Britam towards boosting margins.
We however recognize that increasing the contribution of assets under management from the retail segment could be a daunting task just like micro-insurance. However, with technology (particularly the mobile technology), Britam could see some success.
Long Term Buy- KCB, Equity, Absa, Stanbic, NCBA
Sell- Stanchart, Bamburi, HF