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Monday, April 24, 2017

KQ is up 6.8% year-to-date, poised higher

Financial analyst Aly-Khan Satchu.
Financial analyst Aly-Khan Satchu.

Kenya full year Gross Domestic Product for 2016 clocked a 5.8 per cent expansion, in fact marked the fastest rate of GDP expansion since 2011. The World Bank released their seminal Africa’s Pulse report which spoke to the fact ‘’latest data reveal that only seven countries are seeing growth rates above 5.4 percent in 2015–17’’.

“We are more worried about 2017, which is not looking very pretty,” Faith Atiti, a senior economist at Nairobi-based Commercial Bank of Africa, said by phone to Bloomberg. That remark was probably referencing the sharp slow-down in credit expansion.

The Nairobi All Share ticked -0.03 of a point lower to close at 133.78. The NSE20 rallied +0.624 per cent to close at 3149.33 , a 14-week closing high.

Sasini rallied +7.69 per cent to close at a 2017 high of 28.00. Sasini is +45.83 per cent in 2017 and certainly the alpha stock at the NSE in 2017. Safaricom eased back -0.26 per cent to close at 19.15 and unchanged for the year. Safaricom traded 8.635 million shares.

Kenya Airways firmed +0.81per cent to close at 6.25. KQ is +6.83 per cent in 2017 and the chairman Michael Joseph’s recent statements confirm his intent is bullish for the price.

Nation Media rallied +3.31 per cent to close at 93.50 and was traded session highs of 97.00. Nation Media released full year earnings earnings where FY revenue declines -8..223 per cent to Sh11.3248 billion. Quartz Africa released a report which specifically cited Kenya and I quote ‘’National governments remain the single largest source of revenue for news organizations in Africa. In Rwanda, for example, a staggering 85-90 per cent of advertising revenue comes from the public sector. In Kenya, it’s estimated that 30 per cent of newspaper revenue comes from government advertising.’’

KCB Group rallied +2.26 per cent to close at 34.00 and just below its 2017 high from March 31. KCB was easily traded with 9.182 million shares worth Sh 312.229 million changing hands. KCB is +18.26 per cent in 2017 and that’s without accounting for the mouth-watering final dividend of Sh3 a share, that shareholders are looking forward to.

Equity Bank announced that it had increased its shareholding in its DR Congo business from 79 per cent to 86 per cent (and notwithstanding a sharp GDP deceleration DR Congo is a wide-open opportunity for an early mover).

EABL closed unchanged at 240.00 and traded 253,500 shares. International sentiment towards African Brewery stocks as been trending higher. EABL has rebounded +11.62 per cent over the last four weeks.


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