Kenya’s internet infrastructure is opportunity

The US dollar languishes at closes to two and half year lows. Markets are selling the dollar as they consider how President Donald Trump escapes the special prosecutor Robert Mueller’s noose. Mueller is looking through Trump’s financial affairs and the sheer number of off-market [trades which are done far away from the market price] trades signals he is onto something. My View is that Deutsche Bank loans were back to back loans where Deutsche Bank was not the lender but a Russian Bank was. Furthermore, as the World tightens policy this is further weighing on the dollar.
OPEC have been meeting in Vienna and have apparently capitulated.
However, we need to watch Caracas because a disorderly breakdown in Caracas could limit supplies, particularly to the US.
The Nairobi All Share rallied 0.64 per cent to close at a two year high of 156.11. The Nairobi NSE20 Index rallied 0.31 per cent to close at a 13 month high of 3712.13. Volume clocked 402.844 million.
Safaricom closed unchanged at Sh23.25 but the weighted average was Sh23.48 and Safaricom was trading at session highs of Sh23.75, 2.15 per cent. Safaricom traded 2.9 million shares but there were over eight million shares of demand at the finish, signalling a push into record highs as early as this week. When Jack Ma, the Founder and chairman of Ali Baba, was asked about the infrastructure deficit in Kenya, he turned to Bob Collymore and remarked, ”But Your Internet is really fast!”
The point is this: Safaricom have built a ”best of breed” information highway into the future and we are entering a new trajectory of acceleration in this space.
Uchumi was the biggest gainer at the bourse and rallied 7.93 per cent to close at Sh3.40 and traded 442,300 shares. Uchumi has rallied 40.81 per cent since issuing a stock exchange notice headlined ”Clarification On A Potential Investor”.
The banks which have rebound hard in 2017 caught another tail-wind after the Central Bank governor announced the formation of a committee to look into the effects of the interest rate cap.
Equity Bank was the most active share and rallied 1.89 per cent to close at Sh40.75 on brisk trading of 2.96 million shares worth Sh119.914 million. Equity Bank is 42.5 per cent on a total return basis in 2017.
KCB Group ticked 0.63 per cent better to close at Sh40.00 and traded 2.07 million shares. KCB is 49.56 per cent on a total return basis in 2017.
Standard Chartered had 10 Buyers for every seller and rallied 7.37 per cent to close at a 2017 high of Sh233.00. StanChart exhibited the highest alpha of the big cap banks in the downdraft. StanChart is 33.86 per cent on a total return basis in 2017.
The NSE rallied 3.93 per cent to close at a 2017 high of Sh19.80. The NSE is 35.15 per cent in 2017 and the volume bump at the bourse has encouraged the bulls.
KenGen firmed 0.64 per cent to close at Sh7.85. KenGen has ramped 35.34 per cent higher in 2017 and after a shallow correction is pointed higher again. Sameer Africa rallied 7.14 per cent to close at Sh3.00.


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