Market in active trading ahead of Idd break

Saturday, August 18, 2012 - 00:00 -- BY ALY KHAN SATCHU

The Nairobi NSE20 index firmed 9.56 points to close at 3814.10. The NSE20 is +609 points and 19.001% in 2012 and sits 64 points off
its recent 12-month closing high. The Nairobi all share firmed 0.07 points to close at 83.67. Trading was dominated by EABL +0.87% and Equity Bank +1.18% yesterday. Business was brisk at 434.547m and was four times the previous session's activity.

In Commercial and Services

Safaricom closed unchanged at 3.75 and traded 1.264m shares worth 4.797m. Safaricom was trading at 3.85 +2.67% into the finale. Safaricom has retreated on egregiously low volume off a 12-month closing high of 3.95 and demand outweighs supply now by a factor of 5-1, signaling the pull back is complete. Nation Media firmed 0.537% to close at 188.00 and traded shares at a session high of 195.00 +4.28%. Nation Media traded 20,200 shares worth 3.808m. Nation Media has rallied 15.333% since the 8th of August and the release of its half year numbers. Kenya Airways firmed 1.481% to close at 13.70 and traded 237,500 shares. Uchumi closed unchanged at 15.25 and traded 350,000 shares. Jonathan Ciano's Uchumi is the bull outlier at the Nairobi Securities Exchange and +98.051% so far in 2012.

Among Banks

Equity Bank traded second at the exchange. Equity Bank firmed 1.18% to close at 21.50 and traded 6.989m shares worth 150.254m which was 34.577% of the total volume tradedyesterday. Equity Bank has seen a spike in activity at these levels and buyers are supporting the price and absorbing the supply. Equity Bank is +36.778% on a total return basis in 2012. Centum traded third. Centum retreated 0.83% to close at 12.00 and traded an 11.90-12.15 range and 1.177m shares worth 14.124m. Centum reported a full year profit after tax slide of 48.123% and since that release [which should have been preceeded by a profits warning and wasn't], Centum has fallen 18.644% . Centum is -11.111% in 2012 versus a benchmark NSE20 index which is + over 18% over the same period. Kenya Commercial Bank traded fourth and closed unchanged at 25.25. KCB traded 452,600 shares worth 11.479m. There was buy side demand for 591% more than was traded during the session. KCB remains +60.8308% on a total return basis and at a 2012 high.

In Industrial and Allied

EABL was the most actively traded counter today in a surprisingly brisk and vigorous Friday session at the NSE. EABL firmed 0.87% to close at 232.00 and traded a 230.00-240.00 range and 895,800 shares worth 207.839m. EABL traded 47.829% of the total volume at the exchange. EABL is +36.337% on a total return basis in 2012. EABL sits 3.333% below its all time closing high of 240.00 from July 6. EABL is reporting full year results on Friday, pre market opening. EABL accelerated first half profit after tax +17.461% and earnings per share +37.71% and will book an extraordinary gain [via the sale of its shareholding in Tanzania Breweries at the full year release. I expect EABL to regain its all time high coincident with or just after the full year earnings release.