News Column

Increase in First Half Earnings Propels Hf Share

July 18, 2014

Aly Khan Saatchu

The Nairobi NSE20 rallied 0.875% to close at 4913.61.

The Nairobi all share rallied 0.3588% to close at 151.03.

Equity turnover clocked 802.152m with Safaricom trading 37.48% of that volume.

The equity market is poised to run higher and in a broad based manner on the tonic of lower domestic interest rates.

The forward indicator for rates is surely mortgage rates.

The interesting developments this year have been continued with big cap out performance with the banks pushing the envelope now.

KCB is at a record, Equity just below a record set this month.

Small caps have been a very big stand out.

Value stocks have underperformed.

Commercial and Services

Safaricom retreated 0.82% to close at 12.05 [the weighted average was 12.09] and traded 24.871m shares worth 300.667m which represented 37.48% of the volume traded at the exchange Wednesday. Safaricom has retreated 8.365% since posting a record closing high of 13.15 in April. I am confident Safaricom holds above 12.00 ahead of a run back towards all time highs above 13.00. There is a hard-edged rebound coming. The dividend is worth 3.900% at this price.

Kenya Airways might have based out now and over 10.00. Kenya Airways firmed 1.48% to close at 10.30 and traded 249,600 shares. Citi has a target price of 15.50 which leaves quite a bit of head room.


Kenya Commercial Bank closed unchanged at a record closing high of 53.50 a level which was reached Wednesday and represents a significant chart break out. Kenya Commercial Bank traded 166,900 shares and the light volume is signalling an immediate push higher.

Equity Bank rallied 1.66% to close at 46.00 and traded 3.791m shares worth 174.802m. Equity Bank is +49.59% in 2014 and within striking distance 2.1276% to be exact of an all time high of 47.00 set on July 2.

Standard Chartered was the biggest gainer rallying 8.5% to close at 319.00 and traded 77,300 shares.

Housing Finance reported first half earnings where H1 profit after tax accelerated +19.4703% to 474.442m, largely because of a big year on year increase in non interest income which rose to 506.295m versus 148.407m previously. HFCK announced an interim dividend of 75 cents a share which taken in the mix rallied the price 5.08% to close at 46.50 and traded 582,100 shares.

Centum firmed 0.61% to close at 41.50 and traded a solid chunk of shares of 1.100m worth 45.685m.

Industrial and Allied

ARM Cement closed unchanged at 82.00 and traded 930,300 shares worth 76.285m ahead of today's first half earnings release and AGM at the Laico Regency. ARM has rallied +7.89% over the last four weeks and into this earnings release.

EABL ticked 0.66% easier to close at 299.00 and traded 152,400 shares. EABL traded 152,400 shares and the Price is underpinned at these levels ahead of a run higher and towards 330.00.

BAT rallied +6.25% to close at 680.00 and traded just 3,000 shares. BAT's attractiveness increases in a declining interest rate environment and will push through 700.00.

Crown Paints firmed 3.09% to close at 100.00 and is now +33.333% in 2014.

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Source: AllAfrica

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