Movers & Shakers: January 03, 2013

Kenya: NSE 20 +0.45%, USD 2.2m

The benchmark NSE 20 Share Index climbed 0.45% while volumes improved 178.9% compared to the previous trading session. Most of the leading gainers and losers remained on thin volumes. On overall however, the top movers were mainly on improved prices as bidders moved higher to get supply. Local investors remained net sellers with overall market share at 56%, down from the previous trading of 67.2%. Uchumi was the surprise largest trader of the day with a foreign investor taking position through a block trade. The supermarket chain accounted for 25.2% of the day’s activity. KCB gained 2.5% to KES 31 as position taking on the counter continued ahead of FY12 results due in March 2013. BAT touched a new all-time high of KES 500 after inching 1.4% higher also ahead of FY12 results due in February 2013. Safaricom added 1% to KES 5.15, with some foreign selling starting to join local sellers on the improved price. Most buying on the telco remains from foreign investors. We expect to see speculative position taking but gains might be short-lived ahead of general elections in March 2013.

Nigeria: ASI -0.21%, USD 16.05m

The rally in Banking stocks continued today with the Bank 10 Index gaining another impressive 1.93%. Mid-tier banking stocks in the form of FCMB (+9.76%), Skye Bank (+5.71%) and Fidelity (+5.53%) were the main drivers behind the move higher on speculation that year end results will beat estimates. In terms of activity it was the usual culprits that lead the way, First Bank ($2.88m), Zenith ($2.27m) and GTB ($2.15m). There was a good amount of two way flow in NB today with not too many crosses taking place as a total of 1.42m shares traded with a number of foreign participants showing interest in the counter.

Zimbabwe: Ind +0.05%, Mining unch, USD 2.0m

ZSE stocks closed the second day of the year in mixed trades amid uncertainty over elections as constitution making process remains shrouded in doubt. The industrial index managed a marginal gain of 0.07points or 0.05% after gains in Delta, Innscor, Old mutual and PPC were cancelled by losses in Hippo, DZL, FBCH and Afdis as market breath indicator reflect a bearish sentiment with losers outnumbering gainers by 12 to 8. Dually listed stock Old Mutual and PPC surged 1.97% and 0.50% to 155c and 201c in line with strong international markets following the “last-minute” deal in Washington to avert the "fiscal cliff" of tax hikes and spending cuts. Delta recovered 1c to 100c, Innscor rose 2.14% to 71.5c spurred by foreign interest while Econet despite huge foreign support remain stuck at 445c because of scrip overhang. Foreign participation continues to be the major driver of activity on both purchases and sales with favorite stocks being Econet, Delta and Innscor. Value traded rose to $2m despite an 8% improvement in volumes with 85.4% ($1.7m) invested in Econet alone. Foreign participation amounted to $1.877m and $1.679m on the buyside and sellside respectively. The mining index was unchanged at 66.29 points. BINDURA, FALGOLD, HWANGE and RIOZIM were unchanged at the previous trading levels.