KQ closes at a fresh high as changes loom

The Star (Kenya) - - News - EX­PERT COM­MENT ALY KHAN SATCHU Aly-Khan is a fi­nan­cial an­a­lyst

In­ter­na­tional mar­kets are a mixed bag. Crude oil in New York is trad­ing above $50.00 a bar­rel and at $50.65 last near a 12 month high. Ster­ling was last at 1.2263, and got a fil­lip from a two-year high in­fla­tion print. Stan­dard & Poor’s up­graded Kenya’s credit out­look to sta­ble from neg­a­tive.

“Since our last re­view, govern­ment fi­nanc­ing pres­sures have abated some­what, in­ter­est rates have come down, and the ex­change rate has re­mained sta­ble. Ad­di­tion­ally, we un­der­stand over­sight at the Pub­lic Debt Man­age­ment Of­fice has been bol­stered and new debt-man­age­ment sys­tems have been in­tro­duced. We view th­ese fac­tors as sup­port­ive of the govern­ment’s cred­it­wor­thi­ness,” says S&P in its lat­est up­date.

Trad­ing was thin at the Nairobi Se­cu­ri­ties Ex­change yes­ter­day and clocked just Sh140.807 mil­lion. The Nairobi All Share im­proved 0.24 points to close at 136.63. The Nairobi NSE20 firmed 5.99 points to close at 3249.67

The pi­lots’ union Kalpa called off an in­def­i­nite strike which was set to be­gin yes­ter­day. Michael Joseph, a board di­rec­tor, is to be named the new chair­man to re­place Den­nis Awori. How­ever, the fate of chief ex­ec­u­tive Mbuvi Ngunze, who pi­lots have said must go, was not im­me­di­ately clear. Kenya Air­ways surged +4.34 per cent to close at a fresh multi-month high of Sh4.80. Joseph can ar­gue there is a ‘Michael Joseph’ ef­fect given that the share price has ral­lied +26.315 per cent over the last four weeks. Buy­ers out­paced sell­ers and traded 308,800 shares.

Sa­fari­com eased -0.50 per cent to close at Sh19.75 and traded 909,500 shares. Dea­cons re­bounded +9.52 per cent to close at Sh6.90. NIC Bank was the most ac­tively traded bank share and re­treated -2.65 per cent to close at Sh27.50 and traded 1.163 mil­lion shares worth Sh32.012 mil­lion. Stan­dard Char­tered ral­lied +3.37 per cent to close at Sh184.00. Stanchart is the only bank­ing share that has posted a pos­i­tive re­turn in 2016 at the NSE.

KCB Group firmed 0.92 per cent to close at Sh27.25 and traded just 141,200 shares. Bar­clays Bank eased -1.22 per cent to close at Sh8.05 and traded 573,100 shares. Ju­bilee Hold­ings firmed a shilling to close at Sh474.00 and traded 36,200 shares. To­tal Kenya ral­lied +3.45 per cent to close at Sh18.00 and match a five-month high. Today’s bullish price ac­tion was ef­fected on good vol­ume ac­tion of 694,800 shares worth Sh12.506 mil­lion. KenolKo­bil firmed +3.603 per cent to close at Sh11.50 and traded 462,900 shares. EABL re­bounded +1.49 per cent to close at Sh272.00 and was trad­ing at 280.00 +4.48 per cent ses­sion highs at the fin­ish.

Newspapers in English

Newspapers from Kenya

© PressReader. All rights reserved.