HENATES

At the Nairobi stock market last week ended September 14, 2018, both traded volume and value increased but the All share index declined by 5.58 points or 3.41% to 158.13. The all week drop in the ASI would have been higher but for Friday rally from 157.44 after daily slide that started on Monday. The ASI had closed at 163.71 the previous week and dropped to 162.49 on Monday maintaining this direction daily up to Thursday. Traded volume however, rose  by 22.5% to 89.317m shares from previous week's 72.928m but because more low equities were traded, the growth in traded value came to only 4.32% to Ksh 2.566bn from Ksh 2.459bn. Friday trade paced both volume and value as 38.204m shares were sold for Ksh1.092bn followed in value terms by Ksh 388m on Monday and 23.954m shares on Thursday, in volume terms. Both indicators were paced by Safaricom as 30.9m of its shares were traded for Ksh 824m which accounted for 31.64% of total value realised within the week. Other top 5 volumes were rec...

Last week ended September 14, 2018 was rather tough for the Nigerian stock exchange even though traded value and number of deals struck rose by 39.6% and 8.26% respectively. This was because two other more reflective indicators The All share index and traded volume trended down. The ASI closed Friday, September 14 at 32,327.59 with an unexpected rally from Thursday year low of 32,022.23 but that only reduced the all week drop recorded every day including Thursday. In the end, the Friday figure represented 1710.32 points or 5.02% decline on previous week's 34,032.91. Many price changes were recorded within the week but most active equities in terms of price discovery were top priced Nestle Nigeria, Guaranty Trust Bank and Nigerian Breweries, all recording changes daily.  Nestle tumbled N145 per share on Monday, regained N130 the next day then resumed downwards N6 per share the next day, N81 more on Thursday before going down N28 per share on Friday, bringing total shed within the we...

Year on year inflation rate in Nigeria has taken a u turn after 18 months of slow but steady decrease from heights reached in November 2016 while depression lasted. According to figures on the Consumer Price index for August released today, Friday September 14 by the National Bureau of Statistics, the CPI rose by 11.23% in August this year, compared to 11.14% in July. By implication, the steady decrease in the inflation rate which raised hopes of single digit rate later this year, was punctuated in August and there is no guarantee if this will be one off or signal a new surge. The increase was driven more by the increase in year on year food index by 13.16% compared to 12.85% growth in July. This was because, core index minus farm produce rose by only 10% in August as against 10.2% in July and so actually had decelerating effect on overall  consumer price index for the month  The chances are that the inflation rate may continue upwards in September and beyond mainly because of politica...

That Nigeria today is going through trying times is no more in doubt to all both foreign and local stakeholders. The economy is in real trouble because short sighted and self serving yet shallow populist policies that play only to the gallery is driving it aground. The political structure of the nation in under threat not just from insurgency and seccessionist tendencies, but from the very people who were voted for and given the mandate to nurture and grow it to maturity  The social fabric put together by even the British, defective as it was and remains, is being threatened by parochial and other non- nationalistic considerations across the land.  Now to cap it all, Mr President, the one and only righteous leader Nigeria ever had, is deliberately, by his actions telling people from sections of the country that they do not matter, that the constitutional provision for federal character in sensitive appointments is rubbish WITHOUT any attempt to change the constitution if it is defectiv...

On Wednesday, September 12 2018, the All share index of Nairobi Securities Exchange and Composite index of the Ghana Stock Exchange closed down apace as Nigerian Stock Exchange's ASI had record dive (See previous post). NAIROBI SECURITIES EXCHANGE At the Nairobi stock market, on Wednesday, the ASI went down by 0.85% to new year low of 159.95 as 26 price drops and 7 gains were recorded. It was a decline that occurred despite top Ksh 15 per share increase in the share price of Jubilee Holdings as it found and closed at Ksh 485 per share compared to Ksh 470 previously. From a distance WPP Scan Group trailed Jubilee with Ksh 1.30 per share gain The pressure downwards was led by BOC Kenya as it hit a day high of Ksh 90 per share then low of Ksh 87 before closing at Ksh 88.50 per share, up Ksh 4.50 per share. It was followed by Standard Chartered Bank with Ksh 4 per share decline, 1&M Holdings Ksh 3 per share drop, Nation Media down Ksh 2 per share and Centum Investment which shed Ks...

The Nigerian stock exchange on Wednesday September 12, 2018 closed with a record dive in the All share index by 3.46% or 1156.4 points to 32,292.79. This was not only year low but most likely the highest % drop in the index from 2017 beginning to date. Higher % growths were recorded especially in the giddy June 2017 when at least thrice the ASI grew by above 3% per trading day but no % drop higher than the Wednesday figure within the period. The closest was 3.38% drop recorded on June 1 this year as major decline in Nestle Nigeria (down N42.5 per share) Dangote Cement (minus N17 per share); Total Nigeria which shed N10.3 per share and N4.9 per share decline by Nigerian Breweries combined to drive the ASI down at the rate  That June 1 decline in terms of points (1288.25 points) was higher this Wednesday dive but because the base figure was higher the resultant % drop was lower. You guessed right, the Wednesday dive was led by Dangote Cement with helping hands pressures from Nestlé Niger...

The Nairobi Securities Exchange has issued draft additions to its listing rules and regulations aimed at providing expressly for the listing of environment friendly instruments aka Green bonds. According to the additional draft, the very first requirement is that an independent verifier must be appointed by the issuer for the issue. Such a verifier must be aligned with International Capital Markets Association guidelines for external reviewers or be accredited under climate bonds standards and certification scheme. It will be the duty of the verifier to confirm the green status of the instrument as defined by international green standards and Kenya's national policy on climate change. Green instruments are defined by the draft as instruments intended to raise funds to finance or refinance new or existing green projects that generate climate or other environmental benefits, societal and sustainable development benefits that conform to green standards and guidelines. The memorandum t...