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November 16, 2018

Deacons shares on free fall after reporting loss

Deacons East Africa chief executive Wahome Mutahi with F&F Global partnerships managing director Marcus Chipchase at the signing of a partnership deal in Nairobi on December 15,2016./FILE
Deacons East Africa chief executive Wahome Mutahi with F&F Global partnerships managing director Marcus Chipchase at the signing of a partnership deal in Nairobi on December 15,2016./FILE

The market reacted positively to the first round result in France. Mr. Macron is ranked at 90 per cent for the second round against Marine Le Pen.

Curiously, Hillary Clinton was ranked at those sorts of elevated levels the day before the election. The euro rallied to levels above 1.0900 to the dollar (a November high) before giving back a slice of its gains. The German dax and the French CAC-40 surged.

Activity was light at the securities exchange with volume clocking 311.511 million.

The Nairobi All Share firmed 0.15 to close at 133.65. The NSE20 Index rallied +14.46 points to close at 3143.15

Deacons East Africa reported a full year loss for 2016 of Sh276.345 million versus a full year profit in 2015 of Sh113.75million. Full -year sales declined -3.1114 per cent and Deacons skipped a full year dividend.

In the accompanying commentary, Deacons said “several factors negatively impacted the peak trading season that resulted in suppressed sales and margins. existing malls registered lower footfall and new retail property registered lower purchase conversion rates that led to cannibalisation.

Revenues declined by -3.1 per centy over year 2015 across key brands as a result of product supply challenges from South Africa during half two of the year’’

Deacons which had retreated -27.27 per cent through 2017 closed unchanged at 4.40.

Safaricom eased -0.26 per cent to close at 19.10 on light trading of 2.822 million shares. Expect upside price action over the coming sessions.

KCB Group was the second most actively traded share at the exchange.

The giant finnacial services group firmed +0.74 per cent to regain a 2017 closing high of 34.25 with 1.319 million shares worth Sh45.248million changing hands.

KCB is +19.13 per cent through 2017 and investors are looking forward to snaffling up a three shilling dividend.

Stanbic Bank closed unchanged at 58.00 and traded 723,500 shares. There has been a material shareholding change hands in 2017.

East African Breweries Ltd traded 279,800 shares all at Sh240.00, unchanged from last week’s price.

EABL is -1.63 per cent through 2017 and as headroom.

Athi River Mining Cement rallied +4.35 per cent to close at Sh24.00. The cement maker traded 1.834 million shares at the Exchange .Flame Tree Group was the biggest winner at the exchange and rallied +7.53 per cent to close at 5.00. FTG has lost 1.96 per cent value on its shares in 2017.

 Aly-Khan is a financial analyst

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