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January 18, 2019

Jubilee raises dividend

The Jubilee Insurance House. /FILE
The Jubilee Insurance House. /FILE
The Salvo of 105 Tomahawk Missiles [Raytheon which makes these Missiles closed at a more than 20 year high on Friday] which had lifted gold and oil prices to multi year highs, saw both assets trade lower yesterday on profit-taking. 
The Russian Ruble has been getting creamed as the US sharpens its Russia sanctions policy.
The Kenya Shilling was trading at 100.69 last which is a 2018 high.
The Nairobi All Share corrected -1.68 points lower to close at 189.67
The Nairobi NSE20 eased -3.58 points to close at 3801.65.
Equity turnover clocked 550m.
WPP which is the majority shareholder of WPP-Scangroup announced the departure of its CEO Sir Martin Sorrell’s late Saturday from the world’s largest ad company.  The shares fell as much as 6.6 percent with WPP’s future strategy now unclear. Sorrell, who turned a 1985 investment in a wire shopping basket manufacturer into today’s behemoth of more than 200,000 employees, was long seen as irreplaceable -- the man pulling the strings to connect its more than 400 agencies who create marketing campaigns for clients such as Coca-Cola Co. and Procter & Gamble. 
“The cataclysmic thing has happened,” Alex DeGroote, a media analyst at Cenkos Securities, said by phone. “People are scared there’s another profit warning coming. They are in a negative tailspin.”
WPP-Scangroup firmed +0.93% to close at 16.30 on light trading of 3,400 shares. WPP-Scangroup is -14.21% in 2018.
Safaricom eased -1.61% to close at 30.50 and traded 6.118m shares worth 187.806m. Safaricom is +14.01% in 2018 and has corrected -6.87% since posting a record closing High of 32.75 on the 5th of this month.
Jubilee Insurance reported FY 2017 Earnings, where FY Profit Before Tax accelerated +13.112% and FY Earnings Per share ramped +19.279% higher. Jubilee reported a +25% increase in FY Total Income lifted by a +63.261% surge in FY Other Revenue which jumped +63.261% to register 12.07b. Interestingly, Jubilee reported FY total assets of 104.9675b of which 47.195b was GOK securities, which confirms its a well-managed but cautious Franchise. Jubilee is paying 9/= a share [they are paying an 8 shilling final] and continues to re-invest its Earnings. Jubilee traded 1,400 shares and closed unchanged at 530.00 and is +6.212% in 2018. 
Kenya’s banking sector is currently trading at an average price to book value of 1.8x and a PE of 9.9x as per Cytonn.  The banking sector witnessed a deterioration in asset quality over the past year, with the gross NPLs in the listed segment rising by 22.8% to Kshs197.5bn from Sh160.9bn in FY’2016, as the gross NPL ratio rose to 12.3% from 11.8% in FY’2016. #CytonnReport 
Among the banks, @StanChartKE provides the most for the non performing loans. @CytonnInvest. 
Diamond Trust Bank Kenya has been selected to acquire Imperial Bank Ltd. in an effort to revive the troubled lender that was placed in administration 2 1/2 years ago, according to a person with knowledge of the matter reported Bloomberg. DTB closed unchanged at 210.00 and is +9.375% in 2018. 
Barclays Bank rallied +2.69% to a Fresh 2018 high of 13.35 and traded 494,500 shares. Barclays has surged +39.0625% in 2018. 
Equity Group closed unchanged at 55.50 and is +39.62% in 2018 and targets 60.00, in the near term. 
East African Portland Cement is experiencing ''operational challenges, which at some point saw its production halted, salaries delayed and cement stock almost run out. It is now banking on receiving $100 million, in the short term, from the Kenya government through a land sale deal, to stay afloat.''  EAPCC firmed +1.02% to close at 24.75 and is -8.333% in 2018. 
KenGen is working around its 200 day moving average and eased 5 cents to close at 8.70 on light trading of 160,800 shares. 
EABL traded 330,300 shares all at 251.00 and is +5.46% in 2018 and there is upside to play for from these levels. 
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