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November 17, 2018

EABL most actively traded at Nairobi Bourse

Kenyan shillings,/FILE
Kenyan shillings,/FILE

The Kenya Shilling was last trading at 103.71 and when you factor in the interest rate is better than scratch for the year.

The best performing FIAT currency worldwide is the Mozambique Metical which is +16.73% in 2017. Africa takes up seven out of the 10 positions in the worse currency returns for 2017, led by the Congolese Franc -26.00%, Sierra Leone Leone -25.35%, Ethiopian Birr -17.98%, Nigeria Naira -12.54%, Gambian Dalasi -9.55%, Tunisia Dinar -7.88% and Ghana Cedi -6.54% Year to date.

The overall year on year inflation stood at 5.72 per cent in October 2017 which represented a sharp drop.

The Stock Market was a sea of blue and buoyant as the equity market discounted the political noise and interference.

The Nairobi All Share rallied +1.174% to close at 161.99.

The Nairobi NSE 20 Index rallied +54.78 points to close at 3729.62

Equity turnover affirmed the up move and traded 760.402m.

Safaricom Ltd. said chief executive officer Bob Collymore will take medical leave from the wireless carrier “for a number of months” to be treated for an unspecified illness. Collymore, 59, will be replaced on an interim basis by Joseph Ogutu, director of strategy and innovation, the Nairobi-based wireless carrier said in a statement on Monday. Chief financial officer Sateesh Kamath, Collymore’s alternate on the board of directors, will also take “a primary role,” it said. The CEO had been due to step down in 2019, after his contract was extended for two years in May. Collymore has overseen a 420 per cent rise in Safaricom’s share price (without accounting for dividend payments over this period) since he took the helm seven years ago and puts him in the rock star category of global shareholder value creators. Safaricom firmed +0.99% and was trading at session highs of 26.25 +3.96% at the closing bell. Safaricom traded 3.344m shares and investors are anticipating the H1 earnings release this Friday.

Uchumi Kenya notified the CMA on the late publication of financial results for the year ended 30th June 2017. The Board expects to publish by November 15. Uchumi ticked +1.41% higher to close at 3.60.

Kenya Airways rallied +6.54% to close at 5.70 making that a +12.871% gain over two trading sessions. Kenya Airways traded 614,500 shares.

Equity Bank reported Q3 2017 earnings yesterday where Q3 earnings per share declined by 2.8% y/y to Sh3.87 and Q3 profit before tax declined by 3.6% y/y to Sh20.7bn.

“The engines of the private sector are closing off,” said Equity Group CEO James Mwangi said about the slowing credit growth in Kenya.

“The wind has been taken out of the sail by these temporary headwinds.”

Equity’s investment in government securities jumped 37 per cent from Sh93.1 billion to Sh127.7 billion.

“This is not lazy banking because the return on government securities is higher,” he said.

“We are not able to lend to the micro borrowers whose default rate is as high as 80 per cent.”

Subsidiaries in Uganda, Rwanda, South Sudan, Tanzania and DR Congo collectively increased their profit by 53% oear on year.

Mwangi got ahead of the curve and these results were quite vibrant in the circumstances of the rate cap and a synchronised slowdown in the economy and explains why Equity Bank ramped +4.109% higher to close at 38.00 and was trading session highs of 38.50 +5.41% at the finish. Sellers were in short supply and only 227,600 shares were traded.

KCB traded second at the Bourse and ticked -0.65% easier to close at 38.00 and traded 5.747m shares worth 219.7m.

Barclays Bank predictably rallied +5.82% to close at 10.00. Buyers outpaced sellers by a factor of 10 to one which is constructive for the share price.

EABL was the most actively traded share at the Exchange today and shaved off -0.48% to close at 244.00 on good volume action of 1.234m shares worth 302.354m which represented 39.715% of the total volume traded at the Exchange today.

Mumias Sugar postponed the announcement and submission of its financial results for the year ended June 30 2017 until November 30. Mumias Sugar firmed +4.55% to close at 1.15.

BAT (which is a preeminent dividend paying stock and with inflation lurching lower - the dividend stream becomes more valuable and keenly sought) rallied +5.96% to close at 800.00 where 56,400 shares were traded.

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