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Market Report – 31st December 2021


Faida Research - January 4, 2022 - 0 comments

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Features of the week

Equity Markets Overview 2021

In 2021 the NASI, NSE20 and NSE25 rose by 9.4%, 1.8% and 9.6% to 166.46, 1902.57 and 3,759.84 respectively as at 31st December 2021. This is an improvement compared to 2020, where prices on most counters declined significantly into bear market territory weighed down by uncertainties arising from the COVID-19 pandemic. The NASI, NSE20 and NSE25 declined by 8.6%, 29.6%, 16.7% to 152.11, 1,868.39 and 3,415.24 respectively at 31st December 2020.

Investor concerns on the omicron variant saw the NASI decline to a 7-month low of 157.53 on 7th December 2021. The variant concerns eased by mid-month with evidence indicating the Omicron variant, although more transmissible, is milder than the Delta variant – the NASI rose as a result to a high of 170.57 on 24th December 2021

We note that infection rates have recently been on the rise (to 29.6% on 20th December from 6.5% on 13th December). The government remains focused on increasing COVID-19 vaccination rates with an aim to have all adults vaccinated by June 2022. We opine that higher vaccination rates will lessen the need for strict COVID-19 restrictions and support economic recovery.

Equities Market Summary

Nairobi Securities Exchange Performance

The All Share Index (NASI) eased by 2.4% while the NSE20 remained flat w-o-w to close the week at 166.46 and 1,902.57 respectively. Equity turnover fell by 60.4% to KES 0.7 billion and the volume traded declined by 52.8% to 22.2 million. Notable price gains in the week included; Equity (8.8% w/w to KES 52.75), Britam (6.5% w/w to KES 7.50), Co-op (4.0% w/w to KES 12.95), Bamburi (3.8% w/w to KES 38.00), BK (3.6% w/w to KES 29.00) and Absa (2.6% w/w to KES 11.85). Safaricom’s price fell by 5.1% w/w to KES 37.95. In the coming week, we expect price stability

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