Kenya Air­ways hits a fresh 2016 high of Sh7

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

The Nairobi All Share re­treated -1.01 points to close at 140.49. The Nairobi NSE20 In­dex eased back 2.93 points to close at 3248.54 Equity turnover clocked Sh448.198 mil­lion.

Sa­fari­com eased -1.18 per cent to close at Sh21.00 and traded 5.744mil­lion shares worth Sh120.742 mil­lion. Sa­fari­com re­leased H1 Earn­ings last Fri­day where H1 EPS ac­cel­er­ated +33.33 per cent. Any price correction will be shal­low ahead of a re­turn to fresh all time highs. Sa­fari­com is +37.66 per cent in 2016 on a to­tal re­turn ba­sis vastly out­per­form­ing the Nairobi All Share which is -4.00 per cent over the same pe­riod.

Kenya Air­ways ral­lied +2.189 per cent to close at a fresh 2016 high of Sh7.00. Kenya Air­ways closed the ses­sion trad­ing ses­sion highs of Sh7.20 +5.11 per cent sig­nalling the re­cent up­swing has legs. Kenya Air­ways traded 1.774 mil­lion shares and is now +42.85 per cent in 2016. Busi­ness Daily re­ported that chair­man Michael Joseph is set to visit the KLM CEO within two weeks to rene­go­ti­ate a num­ber of agree­ments. Mr Joseph has a legacy to pro­tect and his early moves sig­nal he knows ex­actly what needs to be done, hence the re­cent surge in the share price.

Na­tion Me­dia re­treated -1.00 per cent to close at a 2016 low of Sh99.00 and traded 31,800 shares. NMG is -47.10 per cent in 2016. What is clear is that govern­ment spend­ing has slowed big but also not un­like the bank­ing sec­tor, the me­dia sec­tor is slap bang in the mid­dle of its Schum­peter mo­ment.

Ac­cord­ing to Schum­peter, the “gale of cre­ative destruc­tion” de­scribes the “process of in­dus­trial mu­ta­tion that in­ces­santly rev­o­lu­tionises the eco­nomic struc­ture from within, in­ces­santly de­stroy­ing the old one, in­ces­santly cre­at­ing a new one”.The banks saw some broad-based ac­tiv­ity.

Equity Bank, which re­ported quar­ter three earn­ings last week and also pro­nounced the branch dead, closed un­changed at Sh30.75 and traded 3.063mil­lion shares worth Sh94.398 mil­lion. KCB Group, which will report Q3 earn­ings as early as this week, closed un­changed at Sh28.75 and traded 1.717mil­lion shares. DTB closed un­changed at Sh136.00 and traded 154,800 shares.

Stan­dard Char­tered is the only Kenyan bank which has de­liv­ered a pos­i­tive to­tal re­turn in 2016. Stan­chart eased -1.05 per cent to close at Sh189.00. Stan­Chart is +18.41 per cent on a to­tal re­turn ba­sis in 2016 which is a nice place to be for its CEO Lamin Man­jang ahead of a visit of the Stan­Chart PLC board to Kenya this week.

Bar­clays Bank Kenya turned +1.176 per cent firmer to close at Sh8.6 and traded 1.228 mil­lion shares.

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