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January 17, 2019

Investors turn focus on polls in Ghana

After the disjunctive outcome in Gambia where Adama Barrow ousted an incumbent of 22 years, the idiosyncratic and eccentric President Yahya Jammeh, all eyes now turn to Ghana where a closely run election is anticipated. Ghana was the fastest growing economy in Africa in 2011 when the GDP expanded a mouth-watering 14%. Gains were not banked and in fact frittered away, and the IMF is currently providing support. A positive election in Ghana would certainly give legs to some of the more hyperbolic post-Gambia comments

Jeffrey Smith, a founding director of Vanguard Africa, a US-based group which worked with the opposition coalition, said that if Jammeh “can be defeated at the ballot box ... then anyone can”.

“This is going to have resonance way beyond the tiny borders of Gambia,” he said, describing the result as “a momentous occasion for the region writ large”.

The Nairobi All Share closed -0.50 points at 134.67 a fresh nine-week closing low.

The Nairobi NSE20 retreated -13.94 points to close at 3181.48 a 10-week low.

Volume continues to whimper and clocked Sh267.10m.

Eaagads [which is the only coffee pure-play at the Securities Exchange] was high ticked +9.3% to close at Sh19.40.

Safaricom ticked -0.505% lower to close at Sh19.70 and traded 3.5m shares. Buy on reverses which will be shallow ahead of a very strong showing in January as global investors reach for Safaricom's outstanding cash generation in the new year.

Nation Media faded -0.55% lower to close at a fresh multi year low of Shd currently trades on a trailing PE ratio of Sh7.62.

Standard Group which self-evidently operates in a similar Media space did not trade and is -40.00% on a total return basis.

I&M Bank was the most actively traded bank stock and closed unchanged at Sh90.00 where 160,400 shares worth 14.436m were traded. I&M Bank is -6.5% in 2016 and the second best performer in the banking segment through 2016.

KCB Group rallied +1.78% to close at 28.50 and was trading at Sh29.75, +6.25% and just shy of session highs at the finish line. KCB traded 237,700 shares and had Buyers for 4x the volume traded, signalling the bias is higher.

Jubilee Insurance rallied +2.087% to close at an 18-week high go 489.00. Jubilee traded just 1,800 shares. Jubilee is +2.78% on a Total Return Basis in 2016 and has outperformed its peers by a wide margin.

Mumias Sugar closed unchanged at Sh1.30 but was trading six-month intra days highs of Sh1.40, +7.69% at the close. Buyers outpaced sellers by four times and Mumias which is +18.181% over the last four weeks has further to run on this rebound.

EABL was the most actively traded share at the Exchange today and closed -1.229% lower at Sh241.00 and traded 552,500 shares worth 133.677m. EABL has seen sell-side supply pressure and is oversold at -13.62% over 4 weeks.

Poll of the day