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November 18, 2018

Is Trump on a global fi nancial warfare?

US President Donald Trump. /Courtesy
US President Donald Trump. /Courtesy
President Trump tweeted ''I have asked @SecPompeo to closely study the South Africa land and farm seizures and expropriations and the large scale killing of farmers. @TuckerCarlson @FoxNews''  
The Rand fell as much as 1.7% and was last trading at 14.22.
President Trump has been relishing his Financial warfare strategies.
I said on August 13, President Trump seems to be relishing his financial warfare strategies. He has Khamenei on the run, Maduro in Venezuela is being attacked by remote-controlled drone, Xi suddenly looks ever so fragile. 
I am afraid the Rand is now caught in the Trumpian crossfire. 
If this goes fully fledged and it might because it plays like sweet music to Potus’ base then the ZAR is going to 17.00  
The Nairobi All Share closed -0.65 points at 173.31
The Nairobi NSE20 retreated -39.64 points to close at 3305.29
Equity Turnover slipped to just 345m or so.
The turbulent winds seen in EM and Frontier markets seem to have finally landed on our shores.
Commercial and Services
Safaricom closed unchanged at 29.00 and traded 3.045m shares and is well underpinned here ahead of a successful porting of M-Pesa into the Ethiopian market. M-Pesa is a serious grassroots economic stimulant and its Ethiopia expansion a No-Brainer. 
Banks
Standard Chartered reported H1 2018 Earnings where H1 total assets gained +2.393% to clock 295.994b, H1 total operating income accelerated +8.998%, The Loan Loss Provision was -45.214% at [1.266286b] and H1 PAT surged +30.348%. Stanchart is paying a 5/= interim dividend +11.111% Year on Year. The bank has played good defence and now looks primed for growth.
The Loan Loss provision juiced H1 2018 Earnings. StanChart eased -0.96% to close at 207.00 and traded 23,200 shares. Clearly, this was an erroneous price reaction and we should start seeing a move towards 240.00. 
NIC Bank reported an -11.041%  H1 2018 EPS decline off the back of a -2.123% decline in H1 2018 Profit after Tax. NIC trades on a trailing PE of less than 5.5 and such is inexpensive. NIC is a premier tier 2 franchise and has been at the sharper end of the interest rate cap but John Gachora has steered the ship with some adroitness. NIC Bank eased -2.94% to close at 33.00 and traded 101,900 shares. 
The NSE reported a +73.333% surge in H1 2018 EPS and a +72.156% H1 2018 Profit after Tax acceleration. The NSE served up these startlingly good results via a +32% increase in Equity Turnover [during the reporting period] to 259.9m versus 196.8m last time.  Its a volume game and volumes were up Year on Year. They have ''architected'' the markets and now need to accelerate volumes. The NSE closed unchanged at 17.05 in what was an anaemic reaction to good results. Volumes have slowed markedly since this reporting period. 
Industrial and Allied 
EABL was the most actively traded share at the Securities Exchange and closed unchanged at 209.00 and traded 477,200 shares. EABL has had a disappointing run lower this year. EABL reported a -26% slide.
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