KQ touches a new 2016 high at Sh6.10

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

The Nairobi All Share re­bounded 1.02 points to close at 136.81. The Nairobi NSE20 closed +11.12 points at 3214.50. Eq­uity turnover clocked Sh438.373 mil­lion and some­what some se­ri­ously low-ball vol­ume ses­sions last week. Kap­cho­rua Tea ral­lied +6.66 per cent to close at Sh80. Tea farm­ers have all had quite a wind­fall.

Sa­fari­com (which will re­port earn­ings early Novem­ber) firmed +1.52 per cent to close at Sh20.00 and traded 4.937 mil­lion shares. Buy­ers out­paced sell­ers by a fac­tor of two to one, sig­nalling fur­ther up­side trac­tion into that earn­ings re­lease.

Kenya Air­ways main­tained its ‘’Michael Joseph’’ re­bound and closed +7.96 per cent at a fresh 2016 high of Sh6.10 and traded 2.023 mil­lion shares. Kenya Air­ways has reg­is­tered a par­a­bolic +69.44 per cent price re­bound over the last four weeks. The price surge is a se­ri­ous sig­nal in the noise.

Sid­ian Bank, for­merly known as K-Rep bank (but is not listed at the se­cu­ri­ties ex­change) yes­ter­day an­nounced that it has em­barked on a vol­un­tary re­tire­ment scheme. This is surely a har­bin­ger of things to come in the smaller banks as they right-size their Oper­a­tions. Sid­ian which is ma­jor­ity owned by Cen­tum is mov­ing with des­patch.

Eq­uity Group firmed +0.81 per cent to close at Sh30.75, and was lightly traded with just 82,800 shares chang­ing hands.

Stan­dard Char­tered firmed a shilling and is the only bank at the Nairobi Se­cu­ri­ties Ex­change that has posted a pos­i­tive re­turn in 2016. StanChart is +16.00 per cent on a to­tal re­turn ba­sis in 2016.

EABL was the most ac­tively traded share at the ex­change and closed un­changed at Sh272.00 and traded 1.013 mil­lion shares worth 276.139 mil­lion (62.98 per cent of the to­tal vol­ume traded). EABL is well sup­ported at these price lev­els.

KenGen, which fell sharply af­ter the re­lease of its fi­nan­cial year earn­ings and some -13.77 per cent on Fri­day, sta­bilised and closed un­changed at Sh5.95 with 521,100 shares chang­ing hands.

The share price re­ac­tion on Fri­day was over­cooked and in part be­cause of the dividend pass and an op­ti­cally big dividend pay­ment to the GoK. The share price re­mains un­der­val­ued but the man­age­ment needs to start pro­mot­ing the in­vestor story.

Dea­cons EA shares are down by 58 per cent since it listed at the NSE on Au­gust 2 through yes­ter­day morn­ing. Dea­cons closed limit down -9.72 per cent at Sh5.70.

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