December 2023 Market Wrap-up Report

1. MONEY MARKET FUNDS (MMFS)

In December, the average daily rate for money market funds increased to 12.51% per annum, up from November’s 12.06%. The recent surge can be traced back to the soaring interest rates in government securities, a significant underlying asset class for money market funds.

In terms of individual yields, Etica Money Market Fund boasted the highest performance, recording an average daily yield of 14.81% per annum. Following closely were the Cytonn Money Market Fund, Apollo MMF, GenAfrica MMF, and Lofty Corban Money Market Fund, with respective average daily yields of 14.42%, 14.31%, 14.29%, and 14.27%.

Daily Average Yields for MMFs in December

NO.	Fund Manager	Fund Name	DAILY AVERAGE YIELD (%)
1	Etica Capital Limited	Etica Money Market Fund	14.81
2	Cytonn Asset Managers Limited	Cytonn Money Market Fund	14.42
3	Apollo Asset Management Company Limited	Apollo Money Market Fund	14.31
4	GenAfrica Asset Managers Limited	GenAfrica Money Market Fund	14.29
5	Lofty-Corban	Lofty-Corban Money Market Fund	14.27
6	Nabo Capital Limited	Nabo Africa Money Market Fund	14.11
7	Sanlam Investments East Africa Limited	Sanlam Money Market Fund	13.57
8	Enwealth Financial Services	Enwealth Money Market Fund	13.49
9	Zimele Asset Management	Zimele Fixed Income Fund	13.22
10	Madison Investment Managers Limited	Madison Money Market Fund	13.05
11	African Alliance	African Alliance Kenya Money Market Fund	12.86
12	Co-op Trust Investment Services Limited	Co-op Money Market Fund	12.81
13	Kuza Asset Management Limited	Kuza Money Market Fund (KES)	12.78
14	Jubilee Financial Services Limited	Jubilee Money Market Fund	12.77
15	Genghis Capital	GenCap Hela Imara Fund	12.52
16	ABSA Bank	Absa Shilling Fund MMF	12.26
17	Old Mutual Investment Group	Old Mutual Money Market Fund	12.26
18	KCB Group	KCB Money Market Fund	11.55
19	Dry Associates	Dry Associates Money Market Fund	11.55
20	Orient Asset Managers	Orient Kasha Money Market Fund	11.33
21	CIC Asset Managers Limited	CIC Money Market Fund	11.19
22	Mayfair Asset managers	Mayfair Money Market Fund	11.15
23	ICEA Asset Lion Asset Management Limited	ICEA Lion Money Market Fund	10.97
24	Equity Bank	Equity Money Market Fund	10.93
25	Zimele Asset Management	Zimele Fixed Income Market Fund	10.56
26	Britam Asset Managers (Kenya) Limited	British-American Money Market Fund	8.87

2. EQUITIES

In December, the Kenyan stock market experienced an upward trend, witnessing notable increases in major indexes such as Nasi, NSE 20, and NSE 25, which gained 0.2%, 0.4%, and 0.1%, respectively. This positive performance in the equities market was predominantly fueled by gains seen in stocks like KCB, Stanbic, and Stanchart, which recorded rises of 16.2%, 6.6%, and 2.7% respectively.

However, these gains were offset by losses incurred in other significant stocks such as Kengen, Sanlam, and Equity, which experienced declines of 12.6%, 11.8%, and 7.8%, respectively.

Foreign investors exhibited a bearish sentiment towards key blue-chip stocks, resulting in a net outflow of USD 8.2 million for the month. The total equity turnover for the month stood at USD 20.9 million, with Safaricom emerging as the most traded counter, accounting for 66% of the overall market activity.

Short-term prospects for the stock market appear uncertain due to the challenging environment and the selling off of assets by foreign investors. However, there is optimism in the long term, driven by low valuations and the potential for both global and local economic recovery.

3. GLOBAL MARKETS

In December, global markets witnessed a significant surge in US equities, with a notable increase of 4.8% in USD. Major indices such as the S&P and Dow Jones experienced impressive gains, rising by 4.4% and 4.8%, respectively. Particularly, sectors like Information Technology (IT) demonstrated robust performance during this period.

Concurrently, the US dollar showed weakness, estimated to have declined by 1.4% against a basket of major currencies throughout the month.

Overall, December 2023 in the global markets presented a diverse landscape of opportunities. This was driven by stable prices for goods and services, showcasing the economy’s ongoing strength. Despite tensions prevailing worldwide, financial markets remained relatively stable.