Nation Media hits a fresh high of Sh207

Friday, September 21, 2012 - 00:00 -- BY ALY KHAN SATCHU

The Shilling has softened of late and traded an intra day low of 85.102 versus the dollar before trading at 84.844 last. The Shilling has a high inverse correlation with the price of crude oil and WTI crude traded above $100.00 a barrel for the first time on Friday, on an intra day basis since May.

The Nairobi All Share Index firmed 0.20 points to close at 87.04. The Nairobi NSE20 Index firmed 6.36 points to close at 3956.64 a Fresh 14 Month Closing High. Equity Turnover was 225.372m versus 170.316m.

In commercial

Safaricom was the most actively traded share at the Securities Exchange and closed unchanged at 4.00 with 10.468m shares worth 41.96m changing hands. Safaricom had buyers for just under 8m shares at 4.00 at the closing bell and a demand supply ratio of 13 versus 5, both signalling a floor. Safaricom is +35.593% in 2012, has corrected 5.88% off an 18 month closing high from Sep 11th. I see 4.00 as the floor and a move through 5.00 by year end.

Nation Media rallied 1.97% to close at 207.00 and traded 8,300 shares. 207.00 is a fresh all time closing high. Nation Media has rallied 60.526% on a total return basis in 2012. Standard Group was high ticked 7.865% to close at 24.00 and traded 16,000 shares. Kenya Airways eased 0.77% to close at 12.85 and traded 452,000 shares. Kenya Airways Underperformance versus the benchmark Indices looks overcooked.

In Banks

Kenya Commercial Bank closed unchanged at 27.00 and traded a 27.00-27.50 range and 708,900 shares worth 19.255m. Equity Bank firmed 1.05% to close at 24.00 and traded a 23.50-24.25 range and 1.397m shares worth 33.53m. This is a 15 Month closing high. Equity Bank was however trading session lows of 23.50 -1.05% at the finish line. There has been some turnover in the executive suite.

Housing Finance traded 3rd. HFCK retreated 5.3571% to close at 13.25 and traded 2.014m shares [0.875% of its shares] worth 26.741m. Housing Finance has posted a +17.242% Total Return in 2012. Diamond Trust firmed 2.97% to close at 104.00 and traded 53,500 shares. Co-operative Bank closed 5 cents firmer at 12.30 and traded 1.037m shares.

In Industrial and Allied

EABL traded 4th at the Exchange. EABL closed unchanged at 228.00 and traded 100,700 shares worth 23.029m. EABL is +34.011% in 2012 on a total return basis and sits just 5% below its all time closing high of 240.00 from July 6th, which level I expect to come under renewed attack.

KenGen firmed 1.219% to close at 8.30 and traded 370,000 shares.KenGen accelerated H1 PBT earnings +33.01% and trades on a trailing PE of 9.326. The scale up is now at hand and that bulking up will feed through to the Equity Holders. The Price looks attractive ahead of the FY earnings release.

Kenya Power firmed 0.588% to close at 17.10 and traded 542,400 shares. KenolKobil closed unchanged at 15.45 and traded 805,800 shares. Athi River Mining rebounded 3.414% to close at 212.00 and traded 7,300 shares. Portland was high ticked 7.843% to close at 55.00 and traded 1,300 shares. Mumias Sugar firmed 0.833% to close at 6.05 and traded 1.811m shares.