The im­pact of in­ter­est caps has taken ef­fect

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

The Bri­tish High Court has ruled that the Prime Min­is­ter Theresa May must seek Par­lia­men­tary ap­proval be­fore trig­ger­ing Ar­ti­cle 50. This news sent ster­ling on a sharp run higher and was last at 1.2477 ver­sus the dol­lar. Egypt de­val­ued its cur­rency by 48 per cent in or­der to ex­tin­guish the black mar­ket and qual­ify for $12 bil­lion worth of loans from the In­ter­na­tional Mone­tary Fund.

Pres­i­dent Muham­madu Buhari will be ca­pit­u­lat­ing im­mi­nently – ei­ther that or the Nige­rian econ­omy is com­pletely as­phyx­i­ated. Ac­cord­ing to my records at the Nairobi Se­cu­ri­ties Ex­change had an out­age from 13:45 and by that time Sh551.459 mil­lion worth of busi­ness had been trans­acted.

Clos­ing prices have been there­fore de­layed as I file this. To­mor­row is a big set piece day for the NSE as Sa­fari­com will be is­su­ing half-year earn­ings pre-mar­ket open­ing. Sa­fari­com has also be­gun test­ing its M-Pesa debit cards. Sa­fari­com ral­lied a ro­bust +2.41 per cent to close at Sh21.25 and traded 21.718 mil­lion shares worth Sh461.485 mil­lion. Sa­fari­com has re­turned +39.202 per cent in 2016 (con­sid­er­ably out­per­form­ing the All Share which is -5.00 per cent) over the same dates. My year end price tar­get from early Jan­uary was Sh22.50.

Kenya Air­ways firmed +0.75 per cent to close at Sh6.70 and traded 648,800 shares. Kenya Air­ways has ral­lied +36.73 per cent in 2016.

TPS Ser­ena was well traded with 677,200 shares traded and closed un­changed at Sh18.00. This is a mul­ti­year low level and there has been plenty of price ac­tion at th­ese price lev­els of -28.00 per cent year to date.

James Mwangi an­nounced to­day ‘’the cus­tomer has de­clared the branch dead’’ as he re­leased Eq­uity Bank’s third quar­ter earn­ings where Eq­uity Bank re­ported a profit af­ter tax of Sh15.1 bil­lion (+16.6 per cent y/y) for 3Q16. The im­pact of the in­ter­est caps on lend­ing and de­posit rates took ef­fect to­wards the end of 3Q’16 (mid-Septem­ber 2016). The loan book grew by 3.0 per cent to Sh271.4 bil­lion and cus­tomer de­posits in­creased by 3.8 per cent y/y to Sh331.3 bil­lion. Third quar­ter in­vest­ment se­cu­ri­ties clocked 93.097340 bil­lion vs 51.495493 bil­lion +80.787 per cent, sig­nalling Eq­uity has bought a large chunk of gov­ern­ment se­cu­ri­ties. Eq­uity firmed +0.82 per cent to close at Sh30.75 and traded 27,900 shares. There was buy side in­ter­est for 1000 per cent more shares than were traded.

Kenya Com­mer­cial Bank firmed +0.7 per cent to close at Sh28.00 and was trad­ing at 28.50 +2.7 per cent at the fin­ish line. KCB traded 300,100 shares. KenolKo­bil ral­lied +1.69 per cent to close at a 2016 high of Sh12.00 and traded 243,900 shares.

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