Kenya’s Stock Market Hits New 2017 High
Nairobi All Share Index (NASI) – a weighted index consisting of all the securities on the Nairobi Securities Exchange on Friday’s trading session closed at a new 2017 high of 132.95 points on a decent 11 per cent gain since 8th March 2017.

The gains have been mainly pushed by the Banking stocks which were triggered by comments from the Central Bank of Kenya (CBK) Governor Patrick Njoroge and Treasury CS Henry Rotich that the government was monitoring the impact of the rate cap law situation with a view of reviewing it.

In his State Of the Nation Address on March 15th, President Kenyatta affirmed that the Government was looking into the matter and would make a decision before the elections.

“On the issue of access to credit for SMEs, it is unfortunate that the unintended consequence of the capping of interest rates was a slowdown in lending by our commercial banks. This is an issue that concerns us and is one that I will actively seek to resolve so that credit can start to flow again to the real drivers of our economy.” said President Kenyatta.

Lets have a look at a few top gainers with a significant weight on the NASI

KCB Group (+ 47%)

Since the beginning of February, KCB Group Share Price is Up by 47 per cent from Sh 23 to Friday’s closing price of Sh 33.75 per share. The lender on 9th March also announced a 50% increase in dividends for the FY 2016.

Equity Group (+46%)

Equity Bank (EQTY) Share Price is Up 46 Per cent since January 30th as shown in the Chart Below. From Sh 23.5 to Sh 34.25.

Stanchart Kenya (+30% Since 31st Jan)

Standard Chartered Bank Kenya is among the top lenders that posted impressive FY Earnings for the FY ended 31st December 2016. The Bank’s share Price has also skyrocketed by 30% since 31st January 2016.

Coop Bank Kenya (+23.4% Since Feb 6)

Cooperative Bank Of Kenya Stock (Coop) on Friday 7th April Closed at Sh 14.00, 23.4% rise since Monday Feb 6th 2017. The Bank posted a 15% increase in Profits Before Tax and recommended a bonus issue of one (1) share for every (5) shares held pending regulatory approval

I understand that the bear run has been long and arduous but it's too early to pop the champagne.

cic and centum reminds me this, signs of what to expect when the bull returns!!!

4 hours we await.
8 hours ni ya kulala

a bull can only surface after the elections cloud

hahahaa @SPARKY

I will still hold on

Within 6 trading sessions (from 16th May 2017 when the vodacom deal was announced) safcom trades 150M shares the bulk at 20.50 to finally close above 20.75..Ksh 20.50-21.50 is a tough resistance..watching keenly for volume and price action(cause/effect) in the coming days to determine the nature of these volumes.

KCB fighting the 37-42 resistance without struggle.Good volumes noted as 33-34 levels defeated(app 100M shares traded at these level )and volume spikes at 35.50-36.50 (20M shares traded).This will serve as support as the counter corrects (expected at 42).strongest RSI and MACD highs noted since April 2016 signifying trend change.

As usual, Equity does the chasing albeit with less vigour (Remember the chase to the bottom just pre rate cap)to close at 36.50 (i expected resistance at 36)

For both there is thin supply to 40

Just like bears,bulls are contagious..I noted divergence on MACD for several banking stocks eg DTB

The NSE touches 3317.It has been above 3000 levels from feb 23 2017 and has the strongest MACD and RSI levels since April 2017 (It compares well with KCB and Equity charts).It has been on overbought levels since March 22.
Main obstacle remain to be the election but bulls have to fight obstacles and the crowd will always be wrong..I have also noted that the local participation has really increased (Institutional buyers ???)
Will NSE touch the pre rate cap level 3462 before the correction ??

What is the path of least resistance

Path of least resistance