The hot breath of the Russia investigation continues to get closer and closer to President Trump, with his son Donald Trump Junior caught in the crosshairs. His son-in-law Jared Kushner cannot be far behind. The dollar continues to sink and is the ”Trump” shock-absorber. I learnt that 26.9 per cent of all consumer spending in the UK is now done online. I venture with most Kenyans surfing the information super highway, we will be playing catch-up in short order. The euro has been on the up of late and was last at 1.14 versus the dollar.
Private sector credit growth has slowed further, to 3.3 per cent at end of March 2017, continuing a trend in place since 2015 when it grew 17.8 per cent.
Uchumi Supermarkets announced it has finally found a strategic investor to take a controlling equity stake in the business in exchange for a Sh3.5 billion capital injection. The investor was probably encouraged by the Nakumatt news which was indicating Nakumatt owes Sh30 billion. Suppliers – Sh15 billion; Ten banks Sh8 billion and undisclosed fund managers – Sh7 billio in commercial paper. I asked on Twitter if we had a secondary market where would Nakumatt commercial Paper be trading. I ventured 33cents on the Shilling. KenyaWallstreet characterised it as ”junk”. Vishal Aggarwal said ”I think less.. 10-15c on the dollar. I would discount further for loss of goodwill and possible tax liabilities”.
The Nairobi All Share firmed 0.37 points to close at 152.56, Nairobi NSE20 Index rallied 12.33 points to close at 3632.82.
Equity Turnover clocked 2.365b which is a banner session.
Safaricom was the most actively traded share at the Exchange closed unchanged at 23.00,20.10 per cent on a price basis in 2017 and traded 17.211m shares. Its an Information Century and Safaricom continues to leverage that Information Highway to outstanding effect.
WPP-Scangroup firmed 1.2 per cent to close at a 2017 High of 21.00 on heavy volume action of 5.67 million shares worth Sh119.189 million. WPP-ScanGroup is 13.57 per cent in 2017.
BRITAM EA surged 8.59 per cent to close at a 2017 High of 15.80 on high octane volume action of 104.10 million shares, 5.37 per cent of its shares worth Sh1.64 billion. BRITAM is 58 per cent in 2017 and this might well be the Placement of shares that were once held by Dawood Rawat the Mauritian Banker and Fugitive.
National Bank rallied 6.35 per cent to close at 9.20. National Bank is 27.77 per cent and has rebounded in line with KCB flighting its all share Take-over ”Kite”.
KenGen eased back 5 cents to close at Sh7.85 and traded 622,100 shares. KenGen has surged 35.34 per cent in 2017.
BAT featured in the UK’s Guardian newspaper under a Report which was captioned ”Threats, bullying, lawsuits: tobacco industry’s dirty war for the African market”.
In one undisclosed court document in Kenya, seen by the Guardian, BAT’s lawyers demand the country’s high court “quash in its entirety” a package of anti-smoking regulations and rails against what it calls a “capricious” tax plan.
“The Regulations are unlawful in their entirety as a result of procedural impropriety … The warning requirements [on cigarette packets] constitute an unjustifiable barrier to international trade.”
BAT firmed 0.13 per cent to close at 801.00 and traded 26,400 shares. BAT is 11.88 per cent down through 2017 significantly under-performing the market in 2017.