15 January 2014

Kenya: Bankers and Brewer Dominate Trade At Bourse

The Nairobi all share snapped a two-session downdraft to close 0.10 points higher at 140.79.

The Nairobi all share is +3.0296% in 2014. Nairobi NSE20 index firmed 5.85 points to close at 5023.05 and the bulls will be looking for this index to hold above 5,000.

Turnover was 686.001m versus 381.631m previously.

EABL, KCB, Equity Bank and Safaricom traded 69.006% of the volume at the Securities Exchange.

There were 30 winners and 16 losers at the Securities Exchange confirming conditions underfoot remain constructive and the bourse pointed higher.

I expect the securities exchange to make it a three-year rally in 2014.

The imminent issue of the dollar denominated Eurobond will release the pressure valve in the domestic bond market and we should see interest rates trend lower and this will be supportive.


Sasini Tea and Coffee rallied 4.32% to close at 15.70 and traded 20,200 shares.

Eagaads firmed 3.06% to close at 25.25. Some commentators are expecting a better outcome in 2014 for coffee prices and this would be supportive.

Limuru Tea was low ticked 5% to close at 475.00 on just a 100 shares. Limuru Tea (according to my calculations exhibits the largest discount to net asset value of all the agricultural counters and discount to NAV is a generic problem) sits adjacent to Nairobi and therefore, the land value extremely valuable.

Commercial and Services

Safaricom closed unchanged at 11.65 and traded 5.696m shares worth 66.423m. Safaricom has been real quick out of the blocks in 2014 and has been the precipitator of a real fast start for the broader indices as well. Safaricom is 0.85% below a record high set last week.


Kenya Commercial Bank closed unchanged at 46.75 and traded 2.043m shares worth 95.987m. KCB trades on a trailing PE of 11.375 and accelerated Q3 2013 PAT +15.431%.

Equity Bank saw heavy action and closed unchanged at 33.75 with 4.175m shares worth 141.272m changing hands.

Kenya Re rallied 2.38% to close at 17.20 and was trading at 17.50 +4.17% session highs at the finale. Kenya Re traded 1.688m shares worth 29.087m.

BRITAM EA firmed 0.303% to close at 16.50 and traded 1.403m shares.

Pan Africa Insurance Company firmed 1.61% to close at 94.50 and traded 16,700 shares.

Centum rallied 3.55% to close at 36.50. Centum was a top three performer at the Securities Exchange last year as investors took the share price from a steep discount versus its NAV to a small premium. Centum is +11.94% in 2014.

Industrial and Allied

KenGen which had retreated 26.25% since the beginning of December through yesterday morning, rallied 6.78% to close at 12.60 and traded 176,900 shares. There was buy side demand for five times the volume traded during at the session at the closing bell.

Home Afrika followed through on Monday's high volume action to rally +4.17% to close at 6.25 and traded 1.038m shares.

EABL eased 0.68% to close at 294.00 and traded 576,200 shares worth 169.704m.

Athi River Cement firmed +1.5625% to close at 96.50. ARM traded 208,4000 shares worth 20.19m. ARM is +8.426% in 2014.

BOC Kenya was high ticked +4.51% to close at 139.00 and traded 1,600 shares.

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