Safaricom’s sell off pushes equity turnover
The International Monetary Fund’s Africa head Abebe Aemro Selassie said the following at the end of last week in Washington: ‘’Economic growth in Sub-Saharan Africa this year is set to drop to its lowest level in more than 20 years. We are, at the moment, projecting close to the order of 1.4 per cent as you will have seen, lower than last year’s 3.5 per cent and indeed, much below the five per cent and more that the region was enjoying between 2010 and 2014.”
‘’Wrapping up, I would like to stress that we view Sub-Saharan Africa as a region of immense economic potential, but in some cases, this potential has been stymied at the moment by elevated macroeconomic imbalances and rising policy uncertainty. Addressing these challenges promptly and forcefully will be important in the coming months.’’
Kenya is projecting to grow at six per cent in 2017. Sterling is trying to find a footing after a precipitous fall last week to trade just above the 1.24 level versus the dollar. New York crude oil pushed through the $50.00 a barrel level to trade at 50.52 last.
The Nairobi All Share eased a marginal 0.02 points to close at 138.15. The Nairobi NSE20 edged -2.41 points lower to close at 3258.93. Equity turnover was muscular and clocked Sh1.010 billion with Safaricom transacting 75 per cent of that,
Safaricom saw heavy volume action and traded 37.949 million shares worth Sh777.246 million and closed unchanged at Sh20.25. The weighted average closing price was Sh20.48 signalling prices are biased higher. Safaricom has posted a 32.69 per cent total return through 2016 and remains on a rocksolid growth trajectory.
Kenya Airways firmed 3.7 per cent to close at a fresh three month high of Sh4.20. Kenya Airways traded 47,200 shares. Kenya Airways has rallied +20 per cent over the last four weeks.
Deacons was marked down limit down to close -9.94 per cent at Sh7.70 on light trading of 3,700 shares. TPS Serena was up-ticked 4.419 per cent to close at Sh18.90. Tourism remains a gently sloping upwards curve which is supportive for a share price that is egregiously priced.
Equity Group shaved off -0.833 per cent to close at Sh29.75 but interestingly was trading session highs of Sh32.25, 7.25 per cent at the closing Bell. Equity traded 4.414 million shares worth Sh132.040 million. Equity is -20.625 per cent on a total return basis and has rebounded 16.66 per cent off a 2016 low from last month.
KCB Group closed unchanged at Sh27.75 and traded 554,700 shares. Cooperative Bank firmed 25 cents to close at Sh12.65 and was lightly traded with just 33,100 shares changing hands.