KCB buy­ers out­pace sell­ers

The Star (Kenya) - - News Business Financial Market -

The Nairobi All Share made it three up days in a row and closed yes­ter­day +0.12 points at 130.87. The Nairobi NSE20 firmed 11.67 points to close at 3,180.29. Equity turnover clocked Sh581.916 mil­lion ver­sus Sh1.991 bil­lion pre­vi­ously. There was an in­ter­est­ing story on the Teron Fu­tures web­site, which spec­u­lated that the pur­pose of Mark Zucker­berg’s visit to Nairobi was to see whether Face­book might be able to snaf­fle up M-Pesa, which is an in­ter­est­ing (if spec­u­la­tive) pro­jec­tion. Sa­fari­com closed un­changed at Sh19.00 and traded 6.426 mil­lion shares. Kenya Air­ways re­treated 4.22 per cent to close at Sh3.40 and traded heavy vol­ume of 4.89 mil­lion shares. KCB Group fol­lowed on Wed­nes­day’s 1.90 per cent gain to firm a fur­ther 0.934 per cent to close at Sh27.00. Equity Group firmed 0.96 per cent to close at Sh26.25, and traded 2.735 mil­lion shares. Sell­ers out­pace buy­ers by a fac­tor of two to one for now. Di­a­mond Trust Bank was marked down 6.04 per cent to close at Sh140.00 and on good ticket size of 204,300 shares. DTB is -12.5 per cent since the an­nounce­ment of the in­ter­est rate cap bill. A re­port in one of the dailies in­di­cated that Cen­tum In­vest­ments has changed its rules to al­low it buy back shares from the mar­ket at a time the man­age­ment and board be­lieve the stock is un­der­val­ued at the NSE. Cen­time’s cur­rent share price trades at a more than 30 per cent dis­count to its Net As­set Value (NAV). This re­port was the cat­a­lyst for a 6.57 per cent surge in the price yes­ter­day. Cen­trum closed at Sh40.50 and was trad­ing at limit up Sh41.75, +9.87 per cent at the clos­ing bell. Cen­tum traded 620,400 shares and buy­ers out­paced sell­ers by a fac­tor of seven to one at the fi­nale. KenGen ral­lied 3.97 per cent to close at a five-week high of Sh6.55 and traded 576,300 shares. Trans-Cen­tury main­tained its record break­ing run to close 9.15 per cent bet­ter at 8.95. Trans-Cen­tury has ral­lied 98.88 per cent since Au­gust 26. A head­line ar­ti­cle in Bloomberg yes­ter­day read: East African na­tions are play­ing an in­creas­ing role in driv­ing growth in the world’s poor­est con­ti­nent as they ride a wave of cheap oil, slow­ing in­fla­tion and lower in­ter­est rates. Left be­hind: For­mer pow­er­houses Nige­ria and South Africa. The bad news for com­modi­ties pro­duc­ers has been a boon for East Africa. And in an­other Bloomberg Ar­ti­cle head­lined ‘’Kenyan Lenders Push Cen­tral Bank to Clar­ify Rate-Cap Law’’. Banks last week be­gan cut­ting the cost of loans to a max­i­mum of 14.5 per cent af­ter Pres­i­dent Uhuru Keny­atta on Au­gust 24 signed a law set­ting com­mer­cial lend­ing rates at no more than four per­cent­age points above the cen­tral bank base rate. Two weeks later, lenders are still un­clear whether that refers to the CBR, cur­rently at 10.5 per cent, or the Kenya Banks’ Ref­er­ence Rate, which is at 8.9 per cent, said Lamin Man­jang, chair­man of Kenya Bankers As­so­ci­a­tion. The au­thor is a fi­nan­cial an­a­lyst

Newspapers in English

Newspapers from Kenya

© PressReader. All rights reserved.