The equities market was on a downward trajectory in the past week, with NASI declining the most by 2.2%, while NSE 25, NSE 10 and NSE 20 declined by 1.5%, 1.4% and 0.8% respectively, taking the YTD performance to losses of 24.0%, 9.3%, and 20.2% for NASI, NSE 20, and NSE 25, respectively.
The equities market performance was mainly driven by losses recorded by large-cap stocks such as Safaricom, Bamburi and DTB-K of 4.8%, 3.5% and 3.3% respectively. The losses were, however, mitigated by gains recorded by stocks such as Standard Chartered Bank-Kenya, ABSA Bank and EABL of 2.2%, 0.9% and 0.8% respectively.
During the week, equities turnover increased by 17.2 percent to US$.8.9 million from US$7.6 million recorded the previous week, taking the YTD total turnover to US$ 569.2 million.
Foreign investors remained net sellers for the fourth consecutive week with a net selling position of US$.3.9 million, from a net selling position of US$.0.8 million recorded the previous week, taking the YTD foreign net selling position to USD 281.5 mn.
The market is currently trading at a price-to-earnings ratio (P/E) of 4.9x, 60.0% below the historical average of 12.2x.
The dividend yield stands at 8.9%, 4.6% points above the historical average of 4.3%.
Key to note, NASI’s PEG ratio currently stands at 0.6x, an indication that the market is undervalued relative to its future growth.
A PEG ratio greater than 1.0x indicates the market is overvalued while a PEG ratio less than 1.0x indicates that the market is undervalued