Agri­cul­ture stock firms at the bourse

The Star (Kenya) - - News Business - ALY KHAN SATCHU

The big set piece event in the fi­nan­cial mar­kets this week will be the Opec meet in Vi­enna. The glory days when these folks strut­ted the in­ter­na­tional stage are long gone. I do not ex­pect crude oil to trade above $60.00 through 2017. WTI Crude was last trad­ing at $46.37 a bar­rel. The MPC main­tained the Cen­tral Bank Rate at 10.0 per cent. The Cen­tral Bank said the fol­low­ing in its ac­com­pa­ny­ing an­nounce­ment:

‘’The Cen­tral Bank’s for­eign ex­change re­serves stand at $7.305 bil­lion equiv­a­lent to 4.8 months of im­port cover, cou­pled with the $1.5 bil­lion pre­cau­tion­ary fa­cil­ity from the In­ter­na­tional Mon­e­tary Fund to pro­vide the CBK with suf­fi­cient buf­fers against any short term shocks.

The pri­vate sec­tor credit growth was at 4.6 per cent in Oc­to­ber 2016, largely due to struc­tural fac­tors af­fect­ing the bank­ing sec­tor. The econ­omy grew 6.2 per cent in 2Q16, com­pared to 5.9 per cent over the same pe­riod in 2015.’’

The Nairobi All Share closed -0.29 points at a fresh 4 week low of 136.55. The Nairobi NSE20 In­dex firmed +6.95 points to close at 3256.57. Eq­uity turnover clocked Sh545.359 mil­lion.

Pock­ets of strength were seen in the agri­cul­ture seg­ment of the mar­ket. Kakuzi traded 49,500 shares all at 320.00 +3.9 per cent. Kakuzi has surged +21.67 per cent in Novem­ber and closed at a 5 month high. Kakuzi is +0.94 per cent on a to­tal re­turn ba­sis through 2016.

Sasini Tea and Cof­fee was up-ticked +8.56 per cent to close at Sh19.65 and traded 16,700 shares.

Sa­fari­com was the most ac­tively traded share at the ex­change yes­ter­day and closed un­changed at Sh19.85 with 14.562 mil­lion shares worth Sh289.051 mil­lion and some 52.99 per cent of the to­tal vol­ume traded dur­ing yes­ter­day’s trad­ing ses­sion. Sa­fari­com sits +30.61 per cent on a to­tal re­turn ba­sis in 2016 and has out­per­formed the All Share by 3,700 ba­sis points and as such is a bull out­lier as it has been for a num­ber of years.

Kenya Air­ways ticked -0.75 per cent lower to close at Sh6.55 and traded 902,100 shares. Chair­man Michael Joseph has moved with speed, pre­ci­sion and pur­pose and there is surely more to go on the price into year end. Kenya Air­ways is +33.67 per cent through 2016.

Stan­dard Char­tered Kenya re­ported third quar­ter earn­ings pre-mar­ket open­ing, where Q3 earn­ings per share ac­cel­er­ated +24.5 per cent. The cost to in­come ra­tio im­proved an eye-pop­ping 330 ba­sis points to 40.1 per cent. StanChart’s hold­ings of gov­ern­ment se­cu­ri­ties surged +55.1 per cent ver­sus a year ago. For­eign ex­change in­come clocked Sh2.2 bil­lion (+29.9 per cent y/y) and there was a +77.7 per cent y/y in­crease in other in­come.

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