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Market Report – 22nd October 2021


Faida Research - October 25, 2021 - 0 comments

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Feature of the week:

World Bank Delays KES 14.4 billion loan

  • The World Bank has delayed the issue of a KES 14.4 billion loan that had been approved in June 2021.
  • The loan was set to be used by the government to purchase COVID-19 vaccines from Johnson & Johnson with a target to vaccinate 10.0 million people by December 2021.
  • According to the World Bank, the loan will be released after the Treasury meets certain undisclosed conditions.
  • Further, Kenya would be allowed to purchase part of the vaccines on credit pending release of the loan.
  • Kenya will get to buy vaccines through an African Union facility and also through COVAX – a global scheme for sharing vaccines equitably to lower and middle-income countries.

Commentary

  • The government recently eased restrictions in the country owing to lower infection rates. The nationwide curfew effected in March 2021 was removed and restaurant and bars operating hours were extended.
  • We expect that the loan would go a long way in boosting vaccination rates in the country.

 

Equities Market Summary:

Nairobi Securities Exchange Performance

The All-Share Index (NASI) and the NSE 20 Share Index eased by 0.2% and 0.5% w-o-w to close the week at 178.54 and 1,960.75 respectively. Equity turnover rose by 53.3% to KES 3.2 billion while the volume traded edged up by 33.9% to 73.2 million. Notable price declines in the week included; Scangroup (6.5% w/w to KES 4.59), Sanlam (2.5% w/w to KES 11.65), CIC (2.2% w/w to KES 2.63), DTB (2.1% w/w to KES 58.25), KCB (2.0% w/w to KES 44.20), NCBA (2.9% w/w to KES 25.00) and Co-operative (1.9% w/w to KES 12.75). Safaricom eased by 0.3% w/w to KES 42.95. The company is set to release its half year results for the financial year 2021/2022 on 10th November 2021.We expect increased activity on the counter in anticipation of an interim dividend.

 

Recommendations:

KCB – Neutral

 

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