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Uchumi investor yet to be known

Canada became the first Group of Seven country to join the US in raising interest rates yesterday. The Central Bank benchmark rate was raised to 0.75 per cent, from 0.5 per cent. The punch-bowl is being withdrawn but ever so slowly. The dollar continues to act as a shock absorber for worries about Trump and remains under pressure. Recently, I wrote ”The real economy needs a transparent process, a first round result and a gracious loser. That’s the ask.” Bloomberg carried a report yesterday captioned ”’Blind’ Preparations Seen Stoking Risk of Kenyan Election Unrest.” While the electoral body is ready to hold the vote, it’s still working to “protect vulnerabilities” in its electronic system that will transmit results from polling stations to local constituency counting centres and then to the main centre in Nairobi, Akombe said by phone. It will conduct more tests starting on July 21, she said.

The system could be subject to interference because it runs over a network the IEBC doesn’t control, Akombe said. “There is a vulnerability we are trying to protect, but there is nowhere in the world where this system is foolproof.” The Nairobi All Share rallied 0.43 points to close at 152.99. Nairobi NSE20 Index surged 26.46 points to a Fresh 12 month high of 3659.28.

Equity Turnover was brisk at 1.77 billion.

Limuru Tea which is an esoteric and normally little traded share firmed +0.17% to close at 600.00 and traded 147,900 shares [12.325% of its issued shares] worth 88.74m. Limuru Tea’s Net Asset Value is a multiple of its share price. Safaricom was the most actively traded share at the Securities Exchange and closed unchanged at Sh23.00, the weighted average was Sh23.14 signalling the price bias is to the upside and traded 22.782 million shares worth Sh527.21 million. Safaricom is 20.10 per cent in 2017 and just 2.17 per cent below a record high set on three occasions last month. I expect a move to Sh28.00.

”We hereby clarify that Uchumi Supermarkets has been pursuing a strategic investor and the talks are ongoing, however, no deal has been signed yet as indicated by some media outlets.” This announcement was the equivalent to waving a red rag at the bulls who rallied Uchumi 8.16 per cent to close at Sh2.65 on 822,700 shares worth of business. WPP ScanGroup rallied 5.95 per cent to close at Sh22.25, a 2017 closing High.

CO-OP Bank firmed 0.36 per cent to close at Sh14.00 and on heavy volume action of 15.56 million shares worth Sh217.93 million. Shareholders received a bonus share for every five held last week which explains the recent price adjustment.

Equity Bank firmed 25 cents to close at Sh37.50 and traded 8.83 million shares. Recent volume looks as if it is about Norfund rebalancing. National Bank closed limit up at Sh10.10, 9.78 per cent. National Bank is 40.27 per cent in 2017 and the upside price action all happened after KCB announced its interest.

BRITAM EA which rallied 8.59 per cent yesterday on ”size” volume closed unchanged at Sh15.80 and traded 10.163 million shares worth Sh160.909 million.

East Africa Breweries Limited which announced that their Sh15 Billion plant in Kisumu would be ”up and running in 18 months,” traded 665,400 shares worth Sh163.68 million all at Sh246.00. EABL is 0.81 per cent in 2017 and has scope to play some catch-up. KenGen traded 2.26 million shares at Sh7.85 and 35.34 per cent in 2017.

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