21 February 2013

Kenya: Tight Election Race Is the Least Helpful for NSE

The Nairobi Securities Exchange could not snap a five consecutive session losing streak.

The Nairobi All Share retreated 0.93 points to close at 105.13.

The Nairobi All Share is +10.826% in 2013 but has corrected 3.9908% since the 13th of February when it closed at a multi year high.

The Nairobi NSE20 fell 48.30 points to close at 4502.75.

The Nairobi NSE20 is +8.928% in 2013 but has corrected 146 points and 3.1411% since closing at a 27-month high on February 13th.

The political noise levels and interference continues to spike higher as evidenced in comments from the Chief Justice.

The election looks like a statistical dead heat and a too close to call election is the least helpful outcome to the equity markets.

The EABL correction looks complete now.

Safaricom saw heavy action to the upside and swam against the tide.

Athi River Mining set a fresh all time high.

There was some disorderly price action today in some counters.

Safaricom was the most actively traded share at the securities exchange and firmed 0.885% to close at 5.70. The weighted average was 5.74 and Safaricom was bid at 5.75 +1.77% for most of the session. There was heavy buy side interest showing on the board today.

Uchumi firmed 1.028% to close at 19.65 and traded 1.077m shares worth 21.208m. Uchumi is +2.879% in 2013 and edging towards its 6+ year closing high of 19.95 from the 6th of November last year. I expect Uchumi to cross that level and head towards 25.00. Uchumi has unhindered access to the capital markets and is evidently seeking to accelerate the regional footprint roll out.

Access Kenya corrected 3.03% lower to close at 6.40 while Car and General was low ticked 7.69% to close at 24.00.

Kenya Commercial Bank traded 3rd and retreated 0.68% to close at 36.50. Kenya Commercial Bank is +22.689% in 2013 and has corrected 5.194% since reaching an all time closing high of 38.50 on February 13.

Equity Bank was the 4th most actively traded share but eased 0.91% to close at 27.25.

NIC Bank was the 5th most actively traded share and firmed 0.55% to close at 45.50 after releasing the full year results.

Barclays Bank eased 0.31% to close at 16.30 and is supported by the final dividend pay-out of 70 cents which is worth 4.2944% of yield.

Housing Finance released FY results after the market closed and was trading at 19.00 -5.00% at the closing bell. HFCK's Frank Ireri told Bloomberg they plan to increase the number of outlets to 40 by 2016 from 13 now.

EABL traded 2nd at the exchange and retreated 1.44% to close at 273.00.

Athi River Mining firmed 1.665% to close at 61.00 and set a fresh record closing high. ARM is +36.77% in 2013.

Bamburi Cement was knocked back 7.27% to close at 204.00 while Kenya Power KPLC retreated 1.388% to close at 17.75.

KenGen eased 0.85% to close at 11.65 and Mumias Sugar took a 3.03% hit and closed at 4.80.

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