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December 09, 2018

Kenya Shilling third best performing currency

Kenyan shillings
Kenyan shillings

The US Dollar remains King and is essentially weaponised and like a remote-controlled drone, it can blow up anyone anytime.

Emerging Market assets remain under intolerable selling pressure with the Indian Rupee printing record lows above 70.00

Meanwhile the surprise in the currency Markets in 2018 is the Kenya Shilling which is +2.7% YTD and the 3rd best performing currency world-wide.


Kakuzi reported a +269.97% surge in H1 2018 EPS, a +12.03% increase in H1 2018 Sales which clocked 613.118m. Kakuzi said

During the period under review, tea profits improved due to higher volumes and firm prices in Q1.

Avocado results are significantly improved on last year's performance due to increased volumes and a strong winter market in Europe. Total containers shipped to the end of June were 73% higher than previous year.

These are Strong results. I like the Pivot to Avocados. Its an attractively priced share. Kakuzi did not trade.

Commercial and Services

TPS Serena Hotels reported H1 2018 Earnings here where H1 2018 Sales increased +2.406% to register 2.684910b, Serena booked a First Half Loss after Tax of [168.61m] versus [188.796m] and reported a [824.187m] decrease in H1 cash and cash equivalents. TPS said the following in their accompanying commentary

There is increased interest in selling destination East Africa.

The first Phase of the redevelopment of Nairobi Serena will be handed over in August 2018

Given the seasonal nature of the tourism industry in East Africa the results for the first half should not be taken as a basis for forecasting a Full Year's result.

The results for the period have been impacted by lower than expected sales from the foreign leisure tourism arrivals in Kenya during Q1

There is a material H2 Earnings skew. I expected a stronger H1 but evidently Q2 strengthened versus Q1. TPS Serena Hotels traded 400 shares and closed unchanged at 25.00. TPS Serena is -23.076% in 2018.

Safaricom firmed +0.87% to close at 29.00 and traded 8.721m shares worth 252.982m. Safaricom is +8.411% ahead of a juicy Full Year Dividend Pay-Out which will juice returns even further.


Stanbic Bank Kenya surged +5.00% to close at Fresh 2018 High of 105. StanBic Holdings is +36.11% on a Total Return Basis in 2018 and after reporting a +104.78% H1 2018 EPS surge it still has more to go the upside.

Equity Bank retreated -1.904% to close at 51.50 and was trading at session lows of 49.75 -5.25% at the closing Bell. Equity traded 3.972m shares worth 206.206m.

KCB Group eased -1.00% to close at 49.50 and traded 1.366m shares worth 67.73m.

Industrial and Allied

Long-serving ARM Cement chief executive Pradeep Paunrana has been ousted in a management shake-up of the troubled company orchestrated by UK sovereign wealth fund CDC Group. CDC, which owns a 42 per cent stake in the troubled Nairobi Securities Exchange (NSE)-listed cement maker, has also made other key boardroom changes that will see businessman Linus Gitahi take over as chairman.ARM firmed +1.05% to close at 4.80 and remains -63.076% in 2018.



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