22 January 2013

Kenya: Election Remains a High-Impact Event On the NSE

The Nairobi All Share eased 0.47 points to close at 104.31. The Nairobi All Share is +9.962% in 2013. The All Share closed at a multi-year high on the 16th of January and has corrected 1.687% since that date and over 3 session.

The Nairobi NSE20 Index eased 28.88 points to close at 4471.21. The NSE20 Index is +8.178% in 2013 and has corrected for 3 sessions since closing at a 24 month high on 16th January.

The All Share remains the best performing index in Africa in 2012. The rally which was meteoric has been undergoing a correction over the last 3 sessions but the correction has been orderly and on light volume.

In fact, the index looks well supported in particular because local investors are underweighted equities [and overweight bonds] and have little to supply the market with. The election remains a high beta high impact event.

Safaricom was the most actively traded share at the Securities Exchange closing unchanged at 5.75 and traded 44.024m shares worth 253.155m, which equated to 61.55% of the total volume traded.

Safaricom is +13.861% in 2013 and set a 29-month intra day high of 6.00 on the 9th of January this year. Uchumi firmed 0.262% to close at 19.10 and traded 346,900 shares.

Access Kenya corrected 4.46% to close at 5.35 and traded 41,000 shares. Kenya Commercial Bank closed unchanged at 32.75 and traded 964,600 shares worth 31.817m.

Kenya Commercial Bank is +10.084% in 2013, trades on a trailing PE of 8.804, and closed at an all time high of 34.50 on 16th January. The correction of 5.072% off an all time high was shallow and confirms the bull trend remains intact.

Barclays Bank traded 2nd and firmed 0.63% to close at 16.10 and traded 2.307m shares worth 37.143m. Barclays Bank is +2.22% in 2013 and trades on a 10.833 trailing PE.

Equity Bank eased 0.9708% to close at 25.50 and traded 775,800 shares worth 19.928m. Equity Bank is +7.368% in 2013. Equity Bank trades on a 9.1397 trailing PE.

Standard Chartered closed unchanged at 262.00 and traded 26,600 shares. Co-op Bank firmed 5 cents to close at 13.05 and traded 354,700 shares. Diamond Trust eased 1.4388% off a record closing high to close at 137.00 and traded 28,100 shares.

NIC Bank retreated 3.888% off a record closing high to close at 43.25 and traded 30,200 shares. KenGen corrected 2.909% to close at 13.35 and traded 1.108m shares.

KenGen remains +51.7045% in 2013 and was overdue some profit taking after was has been a parabolic rally this year. KPLC eased 0.84% to close at 17.70 and traded 196,900 shares.

EABL closed unchanged at 295.00 and traded a 290.00-299.00 range and 11,700 shares worth 3.461m. EABL rallied 14.716% January 1st through 16th January and a record high before correcting 2.96% to 295.00.

The sell side volume on the down move was essentially very weak and EABL was trading at 299.00 +1.36% session highs at the finish line signalling the correction was shallow and now complete. Portland was high ticked 7.142% to close at 45.00 on 100 shares.

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