KQ Share Price Steady Despite a Seven-Day Strike Notice by Its Pilots

Kenya Airways share price remained steady despite recent issue of a seven-day strike notice by the Kenya Airways’ (KQ) pilots, stating that they will cripple operations at the airline if its chief executive Mbuvi Ngunze and chairman Ambassador Dennis Awori do not resign for alleged mismanagement.

The Kenya Airline Pilots Association (Kalpa), a body made up of about 450 pilots, says their members will down their tools beginning October 18th, a move that could cost KQ billions of shillings and inconvenience passengers.

In April, Kalpa members went on strike for a day demanding comprehensive management changes at KQ, occasioning heavy revenue losses for the airline as over 20 flights were cancelled.

Market activity slowed down on Wednesday notwithstanding movements witnessed around large caps such as Safaricom, KCB, Bamburi and EABL. The NSE 20 Share index gained 5.19 points to close the day at 3247.11 points while the NASI declined by 0.15 points to end the day at 137.03 points marginally changed from its previous level.

The NSE 25 Share index dropped 3.15 points to settle at 3627.43 points from 3630.58 points yesterday. Market capitalization advanced by 4.12% to KES 1985.128 billion from KES 1906.66 billion earlier, whilst equity turnover condensed to KES 0.55 billion from KES 0.64 billion before, owing to a 17.20% drop in the number of shares traded.

 Currencies

The Kenyan shilling was firm against the US dollar on Wednesday due to support from foreign remittances which helped offset pressure from energy sector demand. The local currency advanced against the Sterling and the Euro. Sterling has fallen against all currencies as the Brexit worries start to deepen.

The options have gently been narrowed as to the UK’s position outside of the EU and as we get further clarity the rates are reacting. With the information that the UK will seek to invoke Article 50 by March 2017 which means there is a 2 year period within which to strike a new deal with the EU. By setting the UK on a path to a more ‘hard’ Brexit financial markets are concerned over the shape of the negotiations ahead and what it will mean for the UK economy.

 Read: Mixed Reactions at Nairobi Bourse on Wednesday