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February 23, 2019

Media wars, TV shutdown hurt share prices

A TV set.The shortage of funds may delay digital migration
A TV set.The shortage of funds may delay digital migration

For 15 harrowing minutes yesterday the Dow Jones Industrial Average tumbled almost 1,600 at its lowest point - its biggest intraday point decline in history

This came after a 666-point rout on Friday that shook investor confidence.

'The machines took over' was a headline in Bloomberg Businessweek.

President Donald Trump has cloaked his administration in the righteousness of the markets and this might become problematic.

Safe havens like the Yen Gold and short term US Government Paper were in demand.

The Question for EM and Frontier Investors is how much blow-back and negative spillover to expect.

Bitcoin got as low as $6,000 before rebounding to $6700 as I file this. Cryptos remain fragile and nerves frayed.

The growth outlook in East Africa The macro data is broadly positive, if nuanced, but sentiment less so says Citi.

The Nairobi All Share corrected -0.53 points off a record closing high to close at 181.38.

The NSE20 improved +4.19 points to close at 3759.95.

Equity turnover exploded to clock 1.997b.

Safaricom eased -0.84% to close at 29.50 on heavy duty volume action of 42.11m shares worth 1.251b. Safaricom traded a 28.75-30.00 range with some selling at session lows at the finish line. Safaricom is +10.28% in 2018 and -1.666% below an all time closing high of 30.00 reached on two occasions this year.

Nation Media Group closed unchanged at 106.00. Nation Media is -8.62% in 2018 and the recent media wars and TV shutdown have weighed on share prices.

Standard Group did not get a fillip from the return of KTN TV and closed -0.78% to close at 31.75 on light trading. Standard is -14.189% in 2018.

Equity Bank eased -0.57% to close at 43.50 and traded 7.75m shares worth 338.859m. Equity is +9.433% in 2018. Equity reported a -2.764% decline in Q3 2017 EPS which gives us a good line of sight on the full year outcome.

KCB Group closed unchanged at 46.25 and traded 3.316m shares worth 153.982m. KCB is +8.817% in 2018 and reported a +5.1% acceleration in EPS through Q3 2017.

CO-OP Bank firmed +0.29% to close at 17.00 and traded 5.452m shares worth 92.718m. CO-OP Bank is +6.25% in 2018.

Diamond Trust Bank rallied +2.44% to close at a 2018 high of 210.00. DTB is +9.375% in 2018.

The Stanlib Fahari IREIT sank -9.5% to close at 10.00 and traded 4.130m shares worth 41.333m. The Fahari IREIT is -6.54% in 2018.

KenolKobil closed unchanged at 14.80 and traded 6.034m shares worth 89.507m. KenolKobil trades on a Trailing PE of 9.024 and accelerated H1 17 PAT +19.541%.

Total Kenya rallied +3.88% to close at 26.75 and traded 30,700 shares. Total is +13.829% in 2018.

EABL closed unchanged at 249.00 and traded 77,400 shares. EABL reported a -17.038% decline in H1 EPS but clearly is repositioning to capture growth more aggressively.

KenGen closed unchanged at 8.35.

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