Foreign buyers drive demand for EABL shares

FMCG SUPPLIER NEWS

The-Star.co.ke - Jun 21st, 10:12

The Nairobi All Share edged 0.13 points lower to close at 126.68.The All Share has posted a +33.544% return in 2013 and sits 1.745% beneath an all time high reached last month. 

The Nairobi NSE20 eased a marginal 1.45 points to close at 4985.48.

The Nairobi NSE20 is +20.614% in 2013 and has closed above the key 5,000 level on April 2nd, 11th, 12th and May 31st this year.

Previously, the NSE20 had not closed above 5,000 since July 2008.

This was a banner session at the securities exchange with equity turnover of 1.937b which ranks in the top three sessions of 2013. The equity market continues to point higher and the bull market is very much intact and in play.

Williamson Tea rallied 5.12% to close at 267.00 and trades on a PE of 2.83 which is egregious. They are currently sitting on 1.098 billion cash in hand. Kapchorua Tea rallied 3.82% to close at 136.00 and reported a 130.50% acceleration in FY PAT and Kapchorua Tea trades on a PE of 2.96.

Safaricom was the second most actively traded share and eased 1.39% to close at 7.10. Safaricom raised the dividend 40.9% to 31 cents a share which is equivalent to 4.366% of yield. I see 7.00 as key support and expect the price to trend back to 7.50.

TPS Serena firmed 2.88% to close at 53.50 and supply is thin and the price is pointed at 60.00.

Uchumi firmed 1.20% to close at 21.00. There is strong buy side interest and attempts to wrestle the price below 20.00 are being met with vigour by buyers. I expect Uchumi to rally through 25.00 on completion of the rights issue.

Kenya Airways eased 0.9% to close at 11.00 which is key chart support and has held since the 28th of March this year.

Nation Media eased 1.52% to close at 323.00.

Kenya Commercial Bank traded 3rd at the securities exchange and firmed 0.61% to close at 41.25. KCB is +38.655% and just 2.9411% below an all time high. Kenya Commercial Bank trades on a Trailing PE of 10.0364.

Equity Bank traded 4th at the Exchange and closed unchanged at 35.75 and is +50.526% in 2013 and trades on a Trailing PE of 10.966.

Barclays Bank firmed 0.84% to close at 18.00 while Housing Finance rallied 2.88% to close at 26.75.

EABL firmed 0.54% to close at 375.00 on heavy action of 2.495m shares worth 935.877m and some 48.311% of the total turnover in what was a banner and a top 5 session of the year at the securities exchange. EABL is +41.509% this year and sits 11.3475% below its all time closing high of 423.00 from last month, when EABL set a record breaking sequence of 12 consecutive all time highs which climaxed at 423.00. Foreign investor demand for the stock has been consistently extreme.

Bamburi Cement edged 0.452% lower to close at 220.00 and traded 264,300 shares worth 58.146m.




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