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Sunday, April 23, 2017

Blue - chips in record gains on on the bourse

Nairobi stock exchange NSE./FILE
Nairobi stock exchange NSE./FILE

The US Dollar has sold off for four consecutive sessions since we learnt of the 25 basis points increase in the Fed funds rate.

The forex markets have run the likes of the South African Rand to 19 month highs and on the basis that the FED will occasionally bare its fangs but is not going to bite hard.

The Bourse here in Nairobi has been on the mend, as Safaricom bounces off egregiously oversold levels and the banking segment [particularly Tier 1] firms up since full year 2016 results turned out better than expected [expectations had become extreme].

The Nairobi All Share rallied +0.59 points to close at 127.20 an 11 week closing high.

The Nairobi NSE20 Index firmed +7.02 points to close at 2990.70 - a three week high.

Safaricom was the most actively traded share at the Nairobi Securities Exchange and firmed +0.28% to close at Sh18.00 and traded 12.692 million shares worth Sh228.463 million. Safaricom remains in oversold territory at -6.00% in 2017.

Kenya Airways has applied for direct flights to John F. Kennedy International Airport in the US starting May. Kenya Airways eased -0.9% to close at Sh5.50 and traded 532,700 shares.

TPS Serena Hotels rallied +4.49% to close at Sh23.25 and is +13.414% in 2017 as investors bet on a still ''gentle'' tourism rebound.

Barclays Bank rallied +1.714% to close at a one week high of Sh8.90 on heavy-duty volume action of 10.109 million shares worth Sh89.976 million. Barclays Bank is underpinned by a final dividend of 80cents a share which is worth 8.988%.

KCB Group surged +5% to close at Sh31.50 which is a fresh 2017 high. KCB is +9.56% in 2017 and is throwing in a final dividend worth 9.52%.

COOP Bank ticked -0.709% lower to close at Sh14.00 [following on the previous sessions stellar +9.3% gain. COOP traded 5.089 million shares and is +6.06% in 2017.

Equity rallied +2.61% to close at Sh29.50 and traded 445,500 shares. Equity announced a boardroom transition.

''Equity Group Holdings Limited (EGHL) has taken a hard look at its operating model in response to a stifling interest rate cap regime, shifting consumer preferences and rising competitive threats in what is seen as a way of adjusting to a new era, through a boardroom transition''.

Kenya Power responded to a report in the Standard on Sunday which said that ''an internal audit showed about one million of the connections from the 3.6 million new customers could be fake or have never been topped up'' Kenya Power said the reports were based on an interim internal report on connectivity. However, the interim report is on Zero Vend and not Connectivity. Zero Vend is a technical term that refers to a pre-paid meter that has not vended upon exhaustion of pre-loaded units. KPLC which had already retreated -20.245% through 2017 and was trading on a price earning ratio of 1.68 signalling the market had already sensed challenges, eased -0.55% to close at 6.45.

KenGen closed unchanged at Sh6.55 and PIC SA has underwritten the price right here at +12.93% in 2017.


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