Markets into Focus: Market Turnover Slightly Rises On Monday

Turnover rose slightly to 2.8 billion shillings driven by trades on the IFB1/2018/15 at average levels of 12 percent quotes on the bond still remain at 11.95 /11.80 percent.

It is unlikely that there will be a tap sale on the newly issued 10-year bond and based on that, as market analysts expect the 10 years to trade down to levels of 12.30 -12.40 percent within the week.

Interbank volumes rose to 25.7 billion shillings at a high of 9.0 percent and low of 5.0 percent, averaging 5.7 percent in a characteristic square market.

The shilling closed lower at 100.79 but still within expectations for this week according to analysts from Genghis Capital.

This week, analysts expect foreign investors to dominate the market with few locals expected to show in a few trades.

KCB and Equity are trading at sub 50 shilling levels as KCB is seen to trade down to 48 shillings. EABL’s support level is still at 200 shillings with trades at 194 shillings in the previous session.

Safaricom is still expected to trade between KES 28.50-29.25 with supply for the counter at above 29.50 while demanding at 28.50-29.0 shillings.

I&M Holdings Financial Results Brief 

I&M Holdings (NSE: I&M) released 1H18 financial results reporting a 12.8 percent y/y increase in EPS to 8.78 shillings from 7.86 shillings in 1H17. The increase was buoyed by Non-interest Revenue (NIR) which grew 34.4 percent y/y to 3.7 billion shillings while Net Interest Income (NII) was muted (0.1% y/y) at 6.9 billion shillings.

Total operating expenses increased 15.8 percent y/y to 5.7 billion shillings attributed to a 46.2 percent y/y rise in Loan Loss Provisions (LLP) to 1.4 billion shillings and staff costs, which rose 10.2 percent y/y to 2.0 billion shillings.

The balance sheet grew 23.5 percent y/y (14.9% q/q) driven primarily by customer deposits that were up 30.6% y/y (22.9% q/q), as the loan book rose 12.6% y/y (6.6% q/q).