Agriculture stock firms at the bourse
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.