Sa­fari­com’s sell off pushes eq­uity turnover

The Star (Kenya) - - News Business - ALY KHAN SATCHU

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.

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