News Column

All Share Index Up As NSE20 Holds Above 5,000

August 14, 2014

Aly Khan Saatchu



The Nairobi all share snapped a four session losing streak to edge 0.10 points higher to close at 154.50. The Nairobi NSE20 eased 13.36 points to close at 5010.13 and has closed above the 5,000 level for the sixth consecutive session.

Previously the NSE20 had been above the 5,000 level on January 29. Equity turnover clocked 371.028m and has slowed of late as sellers thin out which is normally a bullish signal. Equities point higher.

Agriculture

Eaagads rallied 6.35% to close at 33.50 and traded 21,300 shares. Eaagads is the only coffee pure play at the Securities Exchange and is +41.052% in 2014.

Commercial and Services

Safaricom eased 0.39% to close at 12.75 and traded 2.964m shares worth 37.915m. Buyers outpaced sellers by a ratio of two to one and the price is underpinned here ahead of a move to test all time highs of 13.15 set in April.

Kenya Airways rallied 1.95% to close at 10.45 and traded 151,900 shares. A big line of stock has apparently been absorbed and the price targets 11.00.

Banks

COOP Bank released first half earnings before the opening bell yesterday morning. COOP Bank accelerated its net loans and advances +32.689%, accelerated profit before tax plus 15.062% and profit after tax plus 0.266%.

This deceleration between profit before tax and profit after tax was due to an increase in its effective tax rate (+1,050 bps y/y to 30.2%) following the expiry of the bank's grant of a lower tax rate for the five-year period between 2008 and 2013, as a benefit following its listing on the NSE in 2008.

Clearly if you stripped out the tax effect, growth was pegged at around 15%. COOP Bank firmed 0.26% to close at 19.05 and traded 191,800 shares. Interestingly there were buyers for six times the volume traded at the closing bell.

Diamond Trust released the results of their recently conducted rights issue where 22.010009m shares were on offer. The subscription rate was 440.27% and frankly that was predictable. Diamond Trust did not trade yesterday.

Kenya Commercial Bank rebounded 1.851% to close at 55.00 and was trading at 55.50 +2.78% at the closing bell. Kenya Commercial Bank is +17.46% and within striking distance and within 6.77% of a record closing high of 59.00 set August 7. KCB targets 60.00.

Barclays Bank closed unchanged at 17.05 and traded 2.512m shares worth 42.939m. Buyers ran NIC Bank's share price 3.25% higher to close at 63.50 and traded shares as high as 65.00 +5.69% during the session.

The positive price catalyst was the news that the capital markets regulator has approved NIC Bank's plan to raise Sh8 billion through a corporate bond.

Industrial and Allied

ARM Cement rallied +2.439% to close at 82.00 and traded 1.013m shares worth 83.607m. ARM reported a 21%. Bamburi Cement retreated 2.79% to close at 174.00 and traded 60,100 shares.

HomeAfrika rallied 3.703% to close at 4.20 and was trading at session highs of 4.30 +6.17% at the finish line. Home Africa has rallied 27.27% since the August 1 when it closed at a post listing low.


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Source: AllAfrica


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