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Week main highlights at NSE

International Markets continue to be fixated with that epicentre of global risk, Washington and the President Trump administration.The dollar index, a basket of currencies versus the dollar, has sunk -11.00 per cent this year and has been the ‘’shock absorber’’.

We are right up against the election now and recent events from the weekend situation at the DP’s residence and now the discovery of the body of the missing IEBC ICT manager Chris Musando is disconcerting.

Narrative gaps are also not helpful.

The Nairobi All Share firmed a marginal 0.17 points to close at 161.35 a Fresh 25 month high.

The NSE20 eased -1.09 points to close at 3797.53. Equity turnover clocked 793.21 million.

Eaagads Ltd which is the only coffee pure-play listed at the NSE reported full year earnings. Eaagads reported a 3.6 per cent in full year profit after tax. Eaagads skipped a full year dividend and clearly these were significantly better results but admittedly off a low base. Eaagads did not trade.

Safaricom closed unchanged at a record closing high of Sh24.50, 33 per cent on a total return basis in 2017, and traded 13.01 million shares worth Sh320.22 million. Safaricom is on the cusp of rolling out an eCommerce platform, which will be a game-changer.

Nation Media which has proven skilled at wielding the scalpel but where they are still looking for the growth off-ramp corrected 4.42 per cent to close at Sh108.00 and traded 565,200 shares.

STANLIB FAHARI I-REIT reported H1 earnings before the opening bell where the REIT reported a 230.7 per cent acceleration in first half earnings per share, announced that they were had zero gearing and confirmed they currently own three properties [a shopping centre and two semi office/light industrial buildings] valued at Sh2.4 billion. STANLIB said the NAV Net Asset Value per share is Sh19.75 vs. 19.43 +1.647%. STANLIB REIT firmed 1.66 per cent to close at Sh12.20 which represents a -38.22 per cent discount to its Net Asset Value.

COOP Bank clocked a 1.62 per cent price gain to close at Sh15.65 and on good volume action of 5.51 million shares.

I&M Bank rallied 5.55 per cent to close at Sh114.00 and traded 153,700 shares.

KCB eased 25 cents to close at Sh40.75 and traded 2.27 million shares worth Sh92.84 million.

EABL reported full year earnings Friday, where FY revenue accelerated 9.21 per cent to clock 70.24 billion but FY EPS declined 20.41 per cent because of a non-repeat of an extraordinary one-off gain of 2.24 billion the previous Full Year. EABL’s EPS was 3.73 per cent on a continuing operations basis. Net Sales were up nine per cent mainly driven by Kenya, EABL said. EABL maintained the FY dividend Pay-Out at Sh7.50 a share [5.50 Final]. EABL said the following in their commentary;

‘’EABL’s business demonstrated resilience despite a challenging trading environment across East Africa, mainly characterised by inflationary pressures and regulatory volatility delivering a solid set of financial results.’’

The 17.0 per cent reduction in FY PAT might grab the headlines but remember that EABL was lapping FY 16 were there was a 2.249b extraordinary Gain. Headline FY Revenue was +9.211% which is high and healthy against what was a volatile backdrop. The Kisumu Brewery is a big bold bet on ‘’value beer’’ and there is plenty of scope here. ‘’regulatory volatility’’ is a de rigour phrase these days. I thought these results were constructive and support a higher share price and a positive re-rating.

EABL closed unchanged at Sh264.00 but was bid at Sh265.00, 0.38 per cent at the closing bell. EABL traded 326,500 shares.

KenGen rallied 3.6 per cent to close at Sh8.45 and traded 1.35 million shares. KenGen is up 45.68 per cent through 2017 as investors tune into the Geothermal opportunity and since PIC SA mopped up all the loose shares.

Kenya Power firmed 2.94 per cent to close at Sh8.75.

Aly-Khan is a financial analyst


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