17 April 2014

Kenya: Transcentury Tumbles On News of Profit Warning

The Nairobi all share rallied a further 0.6488% to close at a fresh record high as it has every session since Friday.

The Nairobi all share closed at 147.37 and is +7.8444% in 2014.

The Nairobi NSE20 edged 3.95 points lower to close at 4906.96.

The NSE20 is marginally negative for the year.

Equity turnover was 977.34m and brisk.


Williamson Tea was the biggest gainer at the Securities Exchange and closed 9.68% higher at 272.00. It had become oversold on low volume and was overdue a rebound.

Commercial and Services

Safaricom firmed 0.76% to close at a fresh all time high of 13.20 in what has been a winning sequence of all time highs of late. Safaricom traded shares at an intra day high of 13.40 +2.29% and that is an all time high price print. Safaricom traded 11.279m shares worth 149.128m and there were two buyers for every seller for most of the session. Safaricom is +21.65% in 2014.

TPS Serena firmed 1.19% to close at 42.50 the day after releasing FY 2013 earnings which I though significantly outperformed expectations and the broader macro Kenya tourism backdrop [real soft].


Kenya Commercial Bank was the most actively traded share at the securities exchange and eased 0.53% to close at 47.00 and traded 9.117m shares worth 428.506m and that represented 43.8441% of the total volume traded yesterday. This was Kenya Commercial Bank's second most active session in 2014. KCB traded a 46.50-47.25 range. KCB IS -0.529% in 2014 and 6% off a record close of 50.00 reached in Q4 2014. The tightness of yesterday's trading range has actually been a feature for a number of weeks and speaks to real solid buy side demand.

Equity Bank closed unchanged at 32.25 and traded 1.933m shares worth 62.357m. Equity Bank will report Q1 2014 earnings tomorrow.

CFC Stanbic Bank rallied 4.55% to close at 115.00 and whilst +32.18% in 2014 has further headroom.

Transcentury was the biggest loser at the Securities Exchange and fell 12.04% to close at 23.75. Transcentury traded share as low as 20.00 -25.93% during the session. Transcentury released FY 2013 earnings yesterday where FY PAT declined -15.15%. Early yesterday morning, Trancentury released a FY 2014 Profits warning which queered sentiment.

Industrial and Allied

EABL surged 4.444% to close at 282.00 and closed the session trading at 287.00 +6.30%. EABL traded 417,200 shares worth 117.878m. EABL has rallied 6.818% over the last two sessions. EABL has rallied 28.76% since the beginning of March when it closed at a 52-week low. EABL remains -2.75% in 2014 but will reach unchanged as early as next week.

ARM closed unchanged at 85.00 and traded 653,800 shares worth 55.571m.

East African Portland Cement rebounded 6.99% to close at 99.50. EAPC is +44.2% in 2014.

Total Kenya spiked 6.59% to close at 24.25 and traded 18,400 shares. Total Kenya's FY 2013 earnings deserve a higher price.

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