News Column

Equity Bank, HF and Britam Share Price Loses Steam

July 3, 2014

Aly Khan Saatchu



The Nairobi All Share rallied 1.005% to close at a fresh all time high of 153.64.

The All Share is +12.433% in 2014 and its worth contextualising this against the wider sub-Saharan Africa where the South Africa's All Share is at all time high and the Nigeria All Share is at more than 60-month high.

The Nairobi NSE20 which had rallied 251 points June 17 through yesterday morning ticked 2.87 points lower to close at 4922.99.

Equity turnover topped a billion to clock Sh1.139b and these types of volume levels bode well for the IPO of the Nairobi Securities Exchange.

Safaricom rallied 2.3715% to close at Sh12.95 and traded a wide range of Sh12.55 to Sh13.05 on a strong volume of 17.905m shares worth Sh232.464m.

Safaricom is +20.465% in 2014 and less than 1.114% off an all time closing high reached earlier in the year. The violent snap back of 4.435% since June 26 speaks volumes and confirms the bull remains in charge of this stock.

Uchumi closed unchanged at Sh12.30 and traded 3.167m shares [1.193% of Uchumi's shares and therefore a material position] worth Sh38.96m. Uchumi is -36.76% in 2014. The retailer trades on a single digit PE of 9.111 and at a market cap of $37.183m(Sh3.26 billion). I remain astonished that no one has seen fit to launch a takeover bid, frankly.

Standard Group was the biggest gainer and ramped 8.53% higher to close at Sh 35.00 on 6,800 shares.

Interestingly Nation Media Group was 1.61% to close at Sh306.00 on this retail type volume of 800 shares and probably in a knee-jerk reaction to the news that the People Daily which previously cost Sh60 is being distributed free of charge.

Kenya Commercial Bank missed a third consecutive record closing high by the least allowable fraction. KCB's weighted average was Sh52.49 which is rounded down to Sh52.00 and not to Sh52.50. The bank was the second most actively traded share at the Exchange and traded 5.014m shares worth Sh 263.183m which accounted for 23.099% of the total volume. KCB is +10.05% in 2014 and the Push through the old all time high of Sh50.50 represents a bullish chart break-out.

Having rallied Housing Finance +9.36%, Britam +9.3% and Equity Bank +2.17% in a broad based move on Tuesday, we saw more granular price action on these three counters yesterday.

Equity Bank which has been on a big roll in 2014 and was in fact +52.84% this year through yesterday morning closed unchanged at Sh47.00 and traded 1.597m shares worth Sh75.553m.

Equity touched a high of Sh50.00 +6.38% - an all time high price print- but was trading at Sh46.50 -1.06% at the finish line. That might be a signal that there is some bull exhaustion after what has been a parabolic rally this year.

Housing Finance which rallied 9.36% Tuesday yesterday on the news that Britam was looking to snaffle up Equity's stake traded all over the place yesterday. The mortgage lender traded a session low of Sh42.50 [-9.09%] and was was trading session highs of Sh51.00 (+9.09% )at the closing bell. It traded 532,100 shares and closed 0.529% easier at Sh47.00 after all that.

Britam gave back 3.45% to close at Sh21.00 and traded 459,400 shares worth Sh9.731m.


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Source: AllAfrica


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