Market bull run gaining renewed vigour
The NSE20 rallied 31.44 Points to close at 3694.55. The index is +15.257% in 2012. The Nairobi All Share rallied 0.76 points to close at 80.94. Market Cap was 1.037359 Trillion versus 1.027686 trillion. Equity Turnover was 373.029m and EABL which set a fresh all time high for the 2nd consecutive session was responsible for 59% of that volume.The Bull Run is very much intact and once again gaining renewed vigour and traction. EABL is at a fresh all time high as is BAT and Athi River Mining just below one. KenolKobil closed at a 6 year High. Safaricom is at a 10 and a half month high. The pattern is constructive. The Shilling climbed for the 6th straight session and was last at 83.65 a level it last touched in mid May.
Limuru Tea eased 2.173% to close at 450.00 and 7,200 shares were traded.
In Commercial and Services
Safaricom traded 4th and rallied 1.45% to close at 3.50, traded 6.221m shares. I believe A Price Target of 4.00 looks entirely reasonable. Safaricom is +18.644% in 2012. Nation Media firmed 1.117% to close at 172.00 and traded 20,800 shares. Nation Media is +22.8571% in 2012 and trades on a PE of 13.4648. ScanGroup closed unchanged at 54.50 and traded 30,500 shares. ScanGroup is +31.325% in 2012 and 50c below an 11 month high. Uchumi rebounded 3.174% to close at 16.25 and traded 133,400 shares.
Centum firmed 0.375% [It fell yesterday 9.83% after the Release of its FY Earnings and the failure to issue a FY profits warning was front and centre of market chatter] to close at 13.35 and was trading at 13.50 +1.5% at the closing bell. Centum reported yesterday that FY Profit After Tax slid 48.123% to 1.189b. The Portfolio has been re-engineered a great deal. Kenya Commercial Bank closed unchanged at 23.50 and traded 109,100 shares. Standard Chartered rallied 3.141% to close at 197.00 and traded 7,800 shares. Equity Bank traded 2nd. Equity Bank firmed 1.11% to close at 22.75 and traded a 22.75-23.00 range and 1.139m shares worth 26.054m. Barclays Bank traded 3rd. Barclays Bank improved 0.38% to close at 13.10 and traded 1.945m shares worth 25.484m.
In Industrial and Allied
KenolKobil issued a profits warning after the market closed yesterday. It rallied 4.4% to close at 13.05 traded 160,400 shares worth 2.099m.KenolKobil is subject to a takeover from Puma Energy [a subsidiary of Trafigura] and my estimation is that KenolKobil's fair value take out price is no less than 17.68, thats based on a PE of 8 versus 2011 earnings. I think, its not a clever trade to offload shares at this price point. EABL rallied 0.9% to close at 225.00 which is its second consecutive session close at a record all time high. EABL traded a 222.00-230.00 range and 981,100 shares worth 220.746m. EABL has delivered a 32.267% total return in 2012 and investors are chasing the share ahead of its FY earnings release. Bamburi Cement rallied 4.48% to close at 163.00 and traded 45,200 shares. ARM firmed a shilling to close at 203.00 and traded 10,900 shares. Mumias Sugar bucked the trend today to ease 1.526% to close at 6.45 and was trading 6.20 -5.34% and just off session lows at the closing bell. Mumias Sugar traded 1.988m shares worth 12.824m.