The Securities Exchange was remarkably resilient in the face of the events at Westgate. The key issue for investors will be whether this is a one time event or whether we have now entered a new and more uncertain normal.
The foreign investor participation levels have averaged close to 50% since we entered a bull market in April 2012 and we will need to be cognisant of this. The shilling retreated to trade around the 87.50 level, which was an optimal outcome given the circumstances. The Nairobi all share eased 0.3208% to close at 124.26. which is a very resilient performance.
The Nairobi NSE20 retreated 12.4 points to close at 4739.42.
In Commercial and Services:
Safaricom which had closed at an all time high on wednesday, thursday and Friday of last week eased 1.7625% off a record high to close at 8.35. Safaricom traded 9.325m shares worth 77.863m.
TPS Serena did not trade but is the only tourism pure play listed at the Nairobi Securities Exchange and it is tourism which is surely the most likely to ship contagion from the events at WestGate. TPS Serena reported a +17.078% acceleration in first half profit after tax but the second half earnings skew is material. However, TPS Serena has a broad based geographical reach in the region and therefore, I predict any correction might be a buying opportunity.
Kenya Airways ticked 1.06% easier to close at 9.35 and traded 59,700 shares. Everything is baked into the price at Kenya Airways but the airline is also at the sharp end of the Westgate situation.
Kenya Commercial Bank eased 0.555% to close at 44.75 and traded 416,700 shares. Equity Bank was firm and improved 1.48% to close at 34.25 and was trading at 34.50 +2.22% at the finish line. Equity Bank traded 444,700 shares. Buy side demand at the finish line was for 228% more shares than were traded during the session.
Barclays Bank firmed 0.29% to close at 17.05 and traded 651,700 shares.
NIC Bank ticked 0.87% higher to close at 58.00 and traded 349,600 shares worth 20.275m. NIC Bank trades on a trailing PE of 9.6185 and accelerated first half profit after tax +17.156%.
In Industrial and Allied:
EABL firmed 0.33% to close at 304.00 and was trading at session highs of 309.00 +1.98% at the finish line which is a very counterintuitive performance. EABL traded 280,800 shares worth 85.404m. EABL has rallied +7.0422% this month.
Home Afrika was the biggest loser at the exchange and fell 6.71% to close at a fresh post listing low of 6.95