Janet Yellen purred yesterday raising US interest rates a 1/4 point but implied just two more dots [rate hikes] in 2017 and not three.
The markets reacted bullishly to this and rallied across the board.
The Rand, for example, rose to a 19 month high and is as good a proxy for risk as anything.
Gert Wilders’ electoral flop in the Netherlands was seen as bullish for the European Project and the Euro.
The Shilling retreated off 10 week highs to trade with a 103.00 handle for the first time this month.
The Nairobi All Share eased back -0.54 points to close at 124.76
The Nairobi NSE20 Index eased back -5.67 points to close at 2965.31
Safaricom was the most actively traded share at the Nairobi Securities Exchange and closed at Sh17.55 -1.68% and traded 9.616 million shares. Safaricom is -8.355% in 2017 but +8.00% since closing at a one year low on the nineth of this month. The Communications Authority has rowed back from his untenable position on dominance and I expect the price to rebound meaningfully from these current levels.
TPS Serena Hotels rebounded +8.64% to close at Sh22.00.
Equity Group reported full year 2016 earnings on Wednesday where full year earnings per share declined -4.575% to 4.38 and the full year dividend was unchanged at Sh2.00. Equity shrank its total loan book about five per cent year on year and now hold Sh100.6 billion shillings worth of Government of Kenya securities. Equity held a very forthright and robust investor briefing. In that briefing
The chief finance officer asked ‘’if risk free rate (t bonds) yield more than the cap....where is the incentive to price risk?’’
CEO James Mwangi characterised the ‘’operating environment for banks in 2016’’ as turbulent.
Mwangi confirmed Equitel did 227million transactions, agency 62 million transactions, ATMs 24.8 million transactions, branch 20.4 million transactions, which once again confirms that the future is digital.
Equity’s shares dropped -4.31% yesterday but rebounded +1.8% yesterday to close at Sh28.25 which leaves it -5.833% in 2017.
KCB Group closed unchanged at Sh29.50. KCB’s dividend is worth 10.169% and underpins the price. KCB is one of the rare banking shares that is positive for the year at +2.608% in 2017.
Co-operative Bank ahead of an imminent full year 2016 earnings release ticked +0.389% firmer to close at Sh12.90 and was trading at 13.00 1.17% at the finish.
Co-op Bank traded 4.202 million shares.