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September 21, 2018

Markets mute after France’s Macron win

French President-elect Emmanuel Macron attends a ceremony to mark the end of World War II at the Tomb of the Unknown Soldier at the Arc de Triomphe in Paris, France, May 8, 2017. /REUTERS
French President-elect Emmanuel Macron attends a ceremony to mark the end of World War II at the Tomb of the Unknown Soldier at the Arc de Triomphe in Paris, France, May 8, 2017. /REUTERS

The markets reacted in a muted fashion to Emmanuel Macron  (pictured) win in France’s presidential poll. The euro which printed trades above 1.10+ and at November 2016 highs, came off the top to trade at 1.0946 last. This was a classic ‘’Buy the Rumour Sell the Fact’’ scenario.

Crude Oil which has slumped 13% in the space of 3 short weeks and was last trading at $46.57. I am expecting a break-down as low as $32.00.

The Nairobi All Share spiked +1.18% to close at 136.82 and at a November 2016 High.

The Nairobi NSE20 Index firmed +7.34 points to close at 3154.38.

Equity Turnover was brisk at 784.642m.

Safaricom ahead of its Full Year Earnings Release on wednesday this week, surged +3.8% to close at a 2017 closing High of 20.75 and traded 22.92m shares worth 470.44m. Safaricom is +8.355% in 2017 and has plenty of scope to the upside this week.

Kenya Airways has submitted an application for direct flights to the U.S. setting June 2018 as the date for the inaugural landing in Nairobi. Kenya Airways closed unchanged at 6.35 and the appointment of a substantive CEO will encourage the price higher. 

Kestrel Capital put out a research note today which said: ‘’We recommend lighten on Equity Bank, KCB Bank and Co-operative  Bank due to worse-than-expected effects of the interest rate controls as evidenced by the 4Q16 results. Our estimated fair value for Equity Bank is  Sh27.57, for KCB Bank is Sh27.66 and for Co-op Bank is Sh8.56 after adjusting for the Co-op Bank bonus issue of 1 for every 5 shares held’’

KCB Group firmed +0.7575% to close at 33.25 and on muscular volume of 6.447m shares worth 215.81m. KCB is +15.625% in 2017 and Shareholders are keenly anticipating their Sh3 Final Dividend. 

Equity Group closed -5.072% lower at 32.75 and traded 782,500 shares. 

Co-op  Bank firmed +1.04% to close at 14.45 and traded 610,500 shares.

Centum rallied +4.137% to close at 

EABL rowed back -1.29% to close at 230.00 and traded 126,000 shares. 

KenGen firmed +0.76% to close at 6.65 and traded 72,800 shares. KenGen is +14.655% in 2017 and will run up towards 8.00 once this resistance Level at 6.65 is cleared. 

 

Aly-Khan is a financial analyst

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