Weekly Market Roundup: The Stock Market in Focus

News in Brief on Listed Companies

Standard Chartered Bank

The Standard Chartered Bank (NSE: SCBK) announced its 3Q16 results for the period ended 30^th September 2016 recording a net profit of 7.73 billion shillings compared to 6.23 billion shillings posted a year earlier. This was mainly attributed to a 14.8 percent increase in operating income to 21.58 billion shillings.

Interest income increased 18.4 percent y-o-y to 19.69 billion shillings while interest expenses increased 49.9 percent y-o-y to 4.74 billion shillings. Interest earned from the government papers grew by 55 percent to 7.52 billion shillings while income from loans and advances jumped 4.1 percent to 11.48 billion shillings.

Net interest income was up 11.0 percent y-oy to 14.96 billion shillings while non-funded income grew by 24.5 percent to close at 6.62 billion shillings. On the other hand, operating expenses grew by 6.5 percent y-o-y to 10.47 billion shillings. Loan and advances contracted by 4.5 percent y-o-y to 120.76 billion shillings while customer deposits grew 19.8 percent y-o-y to 199.63 billion shillings.

Britam Holdings

Britam Holdings Group (NSE: BRIT), announced plans to cross-list in neighboring 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 shareholder’s base and improvement in counter liquidity; both rallying incentives for the counter.

KenolKobil

Kenol Kobil Limited (NSE: KENO) and Total Kenya Limited (NSE: TOTL) continued to cede market share to fringe oil marketers, in a trend synonymous with the suppression of global oil prices.

Total emerged as the biggest domestic loser of market share, shedding 1.3%; while KenolKobil shed 0.3%.

Kenya Electricity Generating Company

Kenya Electricity Generating Company (NSE: KEGN) has secured 40 billion shillings funding from Japan International Cooperation Agency, aimed at supporting its Olkaria V project.

The power generating company’s move to explore various methods of funding was expected. Following the significant deleveraging during the rights issue, through a debt-to-equity conversion of 20 billion shillings by the Kenyan government, and retaining of cash reserves (after withholding dividends) left.

Kenya Airways

Kenya Airways (NSE: KQ) entered into a code share agreement with Vietnam Airlines in an effort to expand its footprint in the South East Asian market.

The agreement is expected to provide a framework for partnership between Kenya Airways and Vietnam Airlines that will see them market and sell one another’s flights as if they were their own. This brings to 17 code share agreements that Kenya Airways has signed with other international carriers.

The November Inflation in Brief

Kenya’s inflation for the month of November showed a slight uptick to 6.68 percent from 6.47 percent recorded in October.

This spike was largely attributed to 1.17 percent m-o-m increase in the Food and Non-Alcoholic Drinks Index; as a result of several food items outweighing the decrease in others.

The year on year food inflation stood at 11.13 percent in November 2016.House rent and kerosene price increases that outweighed notable falls in cost of cooking gas pushed up the Hosing, Water, Electricity, Gas & Other Fuels segment, by 0.11 percent. The Transport Index increased by 0.55 percent, in November, on account of the increase in pump prices of petrol and diesel.