24 August 2013

Kenya: Friday Investor Reaction to EABL Drop Minimal

The Nairobi all share firmed 0.11 points to close at 124.47. The all share is +31.214% in 2013 and 3.45% below its multi year closing high from May 22 .

The Nairobi NSE20 firmed 7.37 points to close at 4821.50. The Nairobi NSE20 is +16.646% in 2013 and 4.155% below its April 2013 and more than five year closing high.

Equity turnover 1.656b versus 628.089m. BAT traded 2.12% of its shares worth 1.219b shillings and rallied 2.31% to close at 575.00.

EABL released its full year earnings before the opening bell Friday morning. This is a big headline event as EABL represents a material piece of the Securities Exchange's market capitalisation.

EABL had already issued a profits warning on July 30 and the price had declined 11.337% since that date through Friday and I think had priced in the news. EABL firmed 0.983% to close at 308.00 and was trading session highs of 311.00 +1.97% at the finish line. EABL traded 201,500 shares worth 62.146m. EABL reported an eye popping +276% year on year reserve spirits acceleration.

Commercial and Services

Kenya Airways firmed 0.53% to close at 9.45 and traded 202,000 shares. Kenya Airways retreated 5.82% August 1 through August 16 and has subsequently rebounded +6.179% since then. This resilient price action leads me to the view that even an unforeseen event such as the JKIA Fire is priced in.

Safaricom eased 0.63% to close at 7.90 and traded 3.248m shares.

LongHorn Kenya was the biggest loser at the Securities Exchange yesterday and Longhorn retreated by the daily limit of 10% to close at 13.05 and traded 88,500 shares. ScanGroup firmed 0.7246% to close at 69.50 and traded 527,300 shares.


Kenya Commercial Bank firmed 0.56% to regain its record closing high of 45.00 and already reached on two separate occasions in August. Kenya Commercial Bank was trading at 45.25 +1.12% at the finish line.

Standard Chartered released first half 2013 earnings after the closing Bell Thursday. Standard Chartered reported that H1 profit before tax expanded +0.59% to 6.539013b, H1 profit after tax declined -4.795% .Standard Chartered closed unchanged at 294.00 and traded 58,900 shares.

Equity Bank closed unchanged at 34.50 and traded 1.441m shares. Barclays Bank eased 0.2857% to close at 17.45 and traded 4.351m shares.

Industrial and Allied

BAT rallied +2.31% to close at 575.00 and traded 2.120m shares and 2.12% of the company worth 1.219b shillings.

KenolKobil reported its H1 2013 earnings where H1 sales were slashed 37.13% to 65.274760b versus 103.825177b previously.

In the previous reporting period KenolKobil had incurred foreign exchange losses of [4.247272b].KenolKobil eked out an H1 2013 PBT of 199.086m versus a loss of 5.68b.

This is a creditable performance in the circumstances. KenolKobil firmed 1.183% to close at 8.55 but was trading at session highs of 8.95 +5.92% at the finish line. Eveready was the biggest gainer at the exchange and bounced 3.64% higher to close at 2.85 and traded 38,600 shares.

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