Settlement for the bond auction completed last week takes place today which will result in a slow trading day. The market is also eagerly waiting for the results of the Central Bank’s MPC meeting being held today; with expectations that the interest rate will be maintained at 10.00%. November inflation number is set to be released on Thursday this week by the Kenya National Bureau of Statistics.
Kenya Power and Lightning Company Limited (NSE: KPLC) received a court order to sell Kanu’s Nakuru branch offices, offering a means of recovering the KES 212Mn in unpaid bills. The electricity distributor had been in a 12-year court battle with the political party, for defaulting on electricity bills for eight years while occupying offices at Kenyatta International Convention Centre (KICC). We portend that the sale of land will spur bullish sentiment for the company, reflecting an expected boost in the company’s bottom line.
Britam Holdings Group (NSE: BRIT), announced plans to cross-list in neighbouring countries, as part of a four-year strategy to consolidate gains. The listings would be on the Ugandan Securities Exchange (USE), Dar Es Salaam Securities Exchange (TSE) and Rwandan Stock Exchange (RSE); all regions that the insurance firm expanded into four years ago. The cross-listing will bear significant benefits for the company, most notably an increase in shareholders base and improvement in counter liquidity; both rallying incentive’s for the counter.
Market volumes remained relatively unchanged along with foreign participation. The top traded counter was Kenya Commercial Bank Limited (NSE: KCB) with a net foreign outflow due to profit taking. WPP Scangroup Limited (NSE: SCAN) was the second most traded counter for the day, followed closely by KenolKobil (NSE: KENO) with net buying interest into the counter. We expect to see slight movement in the banking counters for the day’s trading session.