KQ stock same de­spite im­prove­ment

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

In­ter­na­tion­ally, bond yields in the UK and in Europe have been back­ing up, ad­mit­tedly off se­ri­ously re­pressed levels.

The dol­lar is at a seven-month high as in­vestors bet a rate hike is a rac­ing cer­tainty in De­cem­ber in the US.

South African Pres­i­dent Ja­cob Zuma might well have met a wor­thy ad­ver­sary in his Fi­nance Min­is­ter Pravin Gord­han who is mak­ing the pres­i­dent look very ex­posed in a Sun Tzu way.

If the pres­i­dent is brought un­der con­trol, then the rand could rally very sharply.

The Nairobi All Share firmed +0.24 points to close at 136.82.

The Nairobi NSE20 In­dex ticked -3.14 points lower to close at 3201.55.

Eq­uity turnover clocked Sh283.17 mil­lion and has been on mute in Oc­to­ber.

Kenya Air­ways re­ported half year 2016 earn­ings this morn­ing. H1 16 rev­enue shaded -3.477 per cent lower to reg­is­ter Sh54.748 bil­lion. Kenya Air­ways re­ported an op­er­at­ing profit of Sh949 mil­lion. The loss be­fore in­come tax im­proved +60.138 per cent to clock Sh4.726 bil­lion. Pas­sen­ger num­bers grew +4.2 per cent to 2.2 mil­lion.

“Restor­ing KQ will not hap­pen au­to­mat­i­cally. We have to look at ar­eas like on-time per­for­mance, our debt, pric­ing and the des­ti­na­tions we fly to. KQ can be sal­vaged. It is a great air­line with a new fleet,” chair­man Michael Joseph said.

Clearly this is a sig­nif­i­cant im­prove­ment although Kenya Air­ways was un­able to snap a se­quence of losses. To­tal eq­uity re­mains neg­a­tive at Sh38.905 bil­lion. Though cash and cash equiv­a­lents im­proved +66.399 per cent to clock Sh12.425 bil­lion.

The tra­jec­tory has im­proved but it re­mains a big turn­around. Kenya Air­ways which had surged +37.75 per cent to a 15 month high in 2016 through yes­ter­day morn­ing, Kenya Air­ways re­treated -8.148 per cent to close at Sh6.20 and traded 1.936 mil­lion shares.

The point to note is that Kenya Air­ways was trad­ing at Sh6.75 and un­changed at the fin­ish line, sig­nalling this bout of profit tak­ing might prove very short.

Sa­fari­com closed un­changed at Sh20.00 and traded 6.139 mil­lion shares worth Sh122.764 mil­lion. I at­tended the Bet­way Kenya launch yes­ter­day in the com­pany of Sa­fari­com chief ex­ec­u­tive Bob Col­ly­more (amongst oth­ers) and bet­ting has cer­tainly lifted SMS rev­enues into strong dou­ble digit growth ter­ri­tory.

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