Channel: AIB-AXYS Research Broadcast
Today's Headlines
▪️ Land, house prices rise at fastest pace in years
Land and house prices in Nairobi increased at the fastest pace in two and three years respectively, on the back of renewed demand from buyers. Data by realtor HassConsult show that on average a house now costs 3.1 percent more in the city, from drops of 0.20 percent last year while the cost of land in these satellite towns on average rose 6.65 percent compared to a drop of 1.1 percent in 2020.
Impact
This is an indication of economic recovery and is positive for the real estate sector.
▪️ Cut in electricity prices ease inflation to 5.39pc
Data by the Kenya National Bureau of Statistics (KNBS) released on Monday showed that inflation dropped to 5.39 per cent in January from a high of 5.73 per cent in December. The Housing, Water, Electricity, Gas and other Fuels’ Index, decreased by 0.75 per cent mainly attributed to a decrease in prices of electricity while food inflation, went up by 1.07 per cent in January.
Impact
Investors are likely to view the decrease in inflation positively,however,we remain concerned about food and fuel prices that are likely to remain elevated thus expect inflation to increase.
▪️ Kenya's Covid positivity rate drops to a 60-day low on vaccination drive
Data from the Ministry of Health shows that the positivity rate dropped to a 60-day low of two percent on Monday, underlying the impact of an aggressive vaccination campaign. By Monday 5.52 million people had been fully vaccinated while 6.52 million partially inoculated.
▪️ AA Kenya selling shares at Sh50,000 in capital raise
Motoring services association
AA Kenya is selling shares to new members at a price of Sh50,000 as it seeks to raise new capital for expansion and transform into a public company. AA says its members will soon become shareholders in a process called demutualisation. However,it did not disclose how much its planning to raise.
▪️ Land, house prices rise at fastest pace in years
Land and house prices in Nairobi increased at the fastest pace in two and three years respectively, on the back of renewed demand from buyers. Data by realtor HassConsult show that on average a house now costs 3.1 percent more in the city, from drops of 0.20 percent last year while the cost of land in these satellite towns on average rose 6.65 percent compared to a drop of 1.1 percent in 2020.
Impact
This is an indication of economic recovery and is positive for the real estate sector.
▪️ Cut in electricity prices ease inflation to 5.39pc
Data by the Kenya National Bureau of Statistics (KNBS) released on Monday showed that inflation dropped to 5.39 per cent in January from a high of 5.73 per cent in December. The Housing, Water, Electricity, Gas and other Fuels’ Index, decreased by 0.75 per cent mainly attributed to a decrease in prices of electricity while food inflation, went up by 1.07 per cent in January.
Impact
Investors are likely to view the decrease in inflation positively,however,we remain concerned about food and fuel prices that are likely to remain elevated thus expect inflation to increase.
▪️ Kenya's Covid positivity rate drops to a 60-day low on vaccination drive
Data from the Ministry of Health shows that the positivity rate dropped to a 60-day low of two percent on Monday, underlying the impact of an aggressive vaccination campaign. By Monday 5.52 million people had been fully vaccinated while 6.52 million partially inoculated.
▪️ AA Kenya selling shares at Sh50,000 in capital raise
Motoring services association
AA Kenya is selling shares to new members at a price of Sh50,000 as it seeks to raise new capital for expansion and transform into a public company. AA says its members will soon become shareholders in a process called demutualisation. However,it did not disclose how much its planning to raise.
Today's Headlines
▪️KQ bailout, fuel subsidy burst State’s budget
The Treasury’s supplementary budget estimates to Parliament indicate fresh allocations of Sh26.5Bn to Kenya Airways, Sh24.9 billion to fuel subsidy, Sh9.1 billion to prepare for the August General Election and Sh8.5 billion to Covid-19 vaccines.
Impact
If passed, this will be positive for the IEBC and fuel subsidy programme as they will benefit from additional funding. However, this will likely lead to additional government borrowing to support the supplementary budget.
▪️ Kwale Titanium miner’s sales double to Sh7.7Bn
Base Titanium, Kwale, more than doubled its sales to Sh7.7Bn in the quarter ended December 2021 on the back of increased exports.
Impact
This will likely be positive for the Shilling as exports of minerals supplement other forex earners from the agricultural and tourism sectors.
▪️ Ethiopian, Qatar airlines to fly 25 extra cargo flights
Ethiopian Airlines and Qatar Airways have permission to fly cargo directly from Nairobi without making stop-overs at their home bases, from the end of January to mid of this month.
Impact
This is positive news for flower farmers as they meet increased demand for fresh flowers in European markets before Valentine's Day. It will likely be positive for the local currency as forex earnings increase.
▪️ Search for expert to supervise Mau Summit expressway extended
The Public Procurement Administrative Review Board (PPARB) has given the Kenya National Highways Authority (KeNHA) 14 days to complete the procurement for an independent supervisory expert for the Sh160Bn Nairobi-Nakuru-Mau Summit Highway.
▪️ Unga gets nod to form two animal feed joint ventures
Unga Group has received regulatory approval to form animal feed joint ventures in Kenya and Uganda with Dutch multinational Nutreco International. The joint ventures are named Tunga Nutrition.
▪️KQ bailout, fuel subsidy burst State’s budget
The Treasury’s supplementary budget estimates to Parliament indicate fresh allocations of Sh26.5Bn to Kenya Airways, Sh24.9 billion to fuel subsidy, Sh9.1 billion to prepare for the August General Election and Sh8.5 billion to Covid-19 vaccines.
Impact
If passed, this will be positive for the IEBC and fuel subsidy programme as they will benefit from additional funding. However, this will likely lead to additional government borrowing to support the supplementary budget.
▪️ Kwale Titanium miner’s sales double to Sh7.7Bn
Base Titanium, Kwale, more than doubled its sales to Sh7.7Bn in the quarter ended December 2021 on the back of increased exports.
Impact
This will likely be positive for the Shilling as exports of minerals supplement other forex earners from the agricultural and tourism sectors.
▪️ Ethiopian, Qatar airlines to fly 25 extra cargo flights
Ethiopian Airlines and Qatar Airways have permission to fly cargo directly from Nairobi without making stop-overs at their home bases, from the end of January to mid of this month.
Impact
This is positive news for flower farmers as they meet increased demand for fresh flowers in European markets before Valentine's Day. It will likely be positive for the local currency as forex earnings increase.
▪️ Search for expert to supervise Mau Summit expressway extended
The Public Procurement Administrative Review Board (PPARB) has given the Kenya National Highways Authority (KeNHA) 14 days to complete the procurement for an independent supervisory expert for the Sh160Bn Nairobi-Nakuru-Mau Summit Highway.
▪️ Unga gets nod to form two animal feed joint ventures
Unga Group has received regulatory approval to form animal feed joint ventures in Kenya and Uganda with Dutch multinational Nutreco International. The joint ventures are named Tunga Nutrition.
Good Morning.
Our group on Telegram is now open for the weekly discussion forum where we seek to have an interactive interaction on the capital markets. Join us:
hottg.com/AIBresearch
Our group on Telegram is now open for the weekly discussion forum where we seek to have an interactive interaction on the capital markets. Join us:
hottg.com/AIBresearch
Telegram
AIB-AXYS Research
Pronounced /A.I.B-Axees-Africa/
AIB-AXYS is engaged in Kenyan Stock Brokerage, Bond Dealing and Corporate Finance Advisory. Forum opens every Thursday from 8:00 to 17:00 EAT.
Research Disclosure: https://www.aib-axysafrica.com/stockrecommedations
AIB-AXYS is engaged in Kenyan Stock Brokerage, Bond Dealing and Corporate Finance Advisory. Forum opens every Thursday from 8:00 to 17:00 EAT.
Research Disclosure: https://www.aib-axysafrica.com/stockrecommedations
Today's Headlines
▪️ Bamburi Cement adopts solar power to reduce energy bill 10pc
Bamburi Cement plans to cut costs and reduce the impact of electricity outages in the main grid by investing in solar power.
Impact
This move is positive for Bamburi as it seeks to reduce costs. However, this will likely negatively impact Kenya Power due to lost electricity sales.
▪️ KMRC sets 12.5pc interest for debut corporate bond
The Kenya Mortgage Refinance Company will pay investors a fixed interest rate of 12.5% for its Sh1.4Bn corporate bond opening Friday.
Impact
This is positive for the corporate bond issuance section at the NSE as well as providing investors with diversified fixed income options.
▪️ Bank earnings hit record Sh178Bn in eleven months
Banks earned a cumulative Sh178.8Bn in the 11 months to November, setting them up for record profits for the year as they cut provisioning for bad loans as the economy continues to recover.
Impact
We expect this to be reflected in banks' FY21 results. This is likely to be positive for investors as banks' earnings increase.
▪️ Crown Paints to raise prices on increased shipping costs
Crown Paints will increase the price of its products by up to eight per cent from April in the wake of a rise in the cost of shipping raw materials.
▪️ Blow for farmers as maize price declines by Sh400
Maize farmers have suffered a blow after prices dropped by Sh400 to Sh2,800 for a 90-kilo bag even as they battle rising costs of inputs.
▪️ Bamburi Cement adopts solar power to reduce energy bill 10pc
Bamburi Cement plans to cut costs and reduce the impact of electricity outages in the main grid by investing in solar power.
Impact
This move is positive for Bamburi as it seeks to reduce costs. However, this will likely negatively impact Kenya Power due to lost electricity sales.
▪️ KMRC sets 12.5pc interest for debut corporate bond
The Kenya Mortgage Refinance Company will pay investors a fixed interest rate of 12.5% for its Sh1.4Bn corporate bond opening Friday.
Impact
This is positive for the corporate bond issuance section at the NSE as well as providing investors with diversified fixed income options.
▪️ Bank earnings hit record Sh178Bn in eleven months
Banks earned a cumulative Sh178.8Bn in the 11 months to November, setting them up for record profits for the year as they cut provisioning for bad loans as the economy continues to recover.
Impact
We expect this to be reflected in banks' FY21 results. This is likely to be positive for investors as banks' earnings increase.
▪️ Crown Paints to raise prices on increased shipping costs
Crown Paints will increase the price of its products by up to eight per cent from April in the wake of a rise in the cost of shipping raw materials.
▪️ Blow for farmers as maize price declines by Sh400
Maize farmers have suffered a blow after prices dropped by Sh400 to Sh2,800 for a 90-kilo bag even as they battle rising costs of inputs.
Today's Headlines
▪️ Kenya reduces finance costs on IMF credit lines
Cheaper World Bank and IMF loans have reduced the average cost of Kenya's loans from 9.1% to 6.9%.
Impact
This is positive in ensuring Kenya’s external debt sustainability due to the cheaper concessional loans. It is also positive for the Shilling as it reduces dollar demand towards repayment of debts.
▪️ Unga starts recovery of payments to Seaboard
Unga Group did not pay management service fees to American Seaboard Corporation in the year ended June 2021 as it started recovering previous overpayments to the multinational.
▪️ KRA loses Sh1.1Bn fight against C&G
Car & General has fought off a Sh1.1Bn tax demand from KRA, at the tax appeals tribunal, over the classification of tuk-tuks as transport vehicles.
▪️ Banks still face bad loans problem, Moody’s says
Bad loans will continue to be the biggest challenge facing local banks this year, according to rating agency Moody's, keeping provisioning levels at a higher level compared to the pre-pandemic period.
▪️ Coffee prices jump as quality beans stream into auction
The weekly coffee prices at auction rallied for the first time in a month to end a streak of losses witnessed in January, helped by an increase in the value of Kenya’s top-grade produce.
▪️ Kenya reduces finance costs on IMF credit lines
Cheaper World Bank and IMF loans have reduced the average cost of Kenya's loans from 9.1% to 6.9%.
Impact
This is positive in ensuring Kenya’s external debt sustainability due to the cheaper concessional loans. It is also positive for the Shilling as it reduces dollar demand towards repayment of debts.
▪️ Unga starts recovery of payments to Seaboard
Unga Group did not pay management service fees to American Seaboard Corporation in the year ended June 2021 as it started recovering previous overpayments to the multinational.
▪️ KRA loses Sh1.1Bn fight against C&G
Car & General has fought off a Sh1.1Bn tax demand from KRA, at the tax appeals tribunal, over the classification of tuk-tuks as transport vehicles.
▪️ Banks still face bad loans problem, Moody’s says
Bad loans will continue to be the biggest challenge facing local banks this year, according to rating agency Moody's, keeping provisioning levels at a higher level compared to the pre-pandemic period.
▪️ Coffee prices jump as quality beans stream into auction
The weekly coffee prices at auction rallied for the first time in a month to end a streak of losses witnessed in January, helped by an increase in the value of Kenya’s top-grade produce.
Today's Headlines
▪️ Kenya reduces finance costs on IMF credit lines
Cheaper World Bank and IMF loans have reduced the average cost of Kenya's loans from 9.1% to 6.9%.
Impact
This is positive in ensuring Kenya’s external debt sustainability due to the cheaper concessional loans. It is also positive for the Shilling as it reduces dollar demand towards repayment of debts.
▪️ Unga starts recovery of payments to Seaboard
Unga Group did not pay management service fees to American Seaboard Corporation in the year ended June 2021 as it started recovering previous overpayments to the multinational.
▪️ KRA loses Sh1.1Bn fight against C&G
Car & General has fought off a Sh1.1Bn tax demand from KRA, at the tax appeals tribunal, over the classification of tuk-tuks as transport vehicles.
▪️ Banks still face bad loans problem, Moody’s says
Bad loans will continue to be the biggest challenge facing local banks this year, according to rating agency Moody's, keeping provisioning levels at a higher level compared to the pre-pandemic period.
▪️ Coffee prices jump as quality beans stream into auction
The weekly coffee prices at auction rallied for the first time in a month to end a streak of losses witnessed in January, helped by an increase in the value of Kenya’s top-grade produce.
▪️ Kenya reduces finance costs on IMF credit lines
Cheaper World Bank and IMF loans have reduced the average cost of Kenya's loans from 9.1% to 6.9%.
Impact
This is positive in ensuring Kenya’s external debt sustainability due to the cheaper concessional loans. It is also positive for the Shilling as it reduces dollar demand towards repayment of debts.
▪️ Unga starts recovery of payments to Seaboard
Unga Group did not pay management service fees to American Seaboard Corporation in the year ended June 2021 as it started recovering previous overpayments to the multinational.
▪️ KRA loses Sh1.1Bn fight against C&G
Car & General has fought off a Sh1.1Bn tax demand from KRA, at the tax appeals tribunal, over the classification of tuk-tuks as transport vehicles.
▪️ Banks still face bad loans problem, Moody’s says
Bad loans will continue to be the biggest challenge facing local banks this year, according to rating agency Moody's, keeping provisioning levels at a higher level compared to the pre-pandemic period.
▪️ Coffee prices jump as quality beans stream into auction
The weekly coffee prices at auction rallied for the first time in a month to end a streak of losses witnessed in January, helped by an increase in the value of Kenya’s top-grade produce.
🔔 Announcement 🔔
We are moving.
Kindly click on the link below to join the new Telegram channel:
https://hottg.com/AIBAXYSResearchUpdates
We are moving.
Kindly click on the link below to join the new Telegram channel:
https://hottg.com/AIBAXYSResearchUpdates
Telegram
AIB-AXYS Research Updates
Pronounced /A.I.B-Axees-Africa/
A channel aimed at updating our clients and investors on pertinent on market activity and economic development. AIB-AXYS Research Updates.
A channel aimed at updating our clients and investors on pertinent on market activity and economic development. AIB-AXYS Research Updates.
🔔 Announcement 🔔
We are moving.
Kindly click on the link below to join the new Telegram channel:
https://hottg.com/AIBAXYSResearchUpdates
We are moving.
Kindly click on the link below to join the new Telegram channel:
https://hottg.com/AIBAXYSResearchUpdates
Telegram
AIB-AXYS Research Updates
Pronounced /A.I.B-Axees-Africa/
A channel aimed at updating our clients and investors on pertinent on market activity and economic development. AIB-AXYS Research Updates.
A channel aimed at updating our clients and investors on pertinent on market activity and economic development. AIB-AXYS Research Updates.
🔔 Announcement 🔔
We are moving.
Kindly click on the link below to join the new Telegram channel:
https://hottg.com/AIBAXYSResearchUpdates
We are moving.
Kindly click on the link below to join the new Telegram channel:
https://hottg.com/AIBAXYSResearchUpdates
Telegram
AIB-AXYS Research Updates
Pronounced /A.I.B-Axees-Africa/
A channel aimed at updating our clients and investors on pertinent on market activity and economic development. AIB-AXYS Research Updates.
A channel aimed at updating our clients and investors on pertinent on market activity and economic development. AIB-AXYS Research Updates.
🔔 Announcement 🔔
We are moving.
Kindly click on the link below to join the new Telegram channel:
https://hottg.com/AIBAXYSResearchUpdates
We are moving.
Kindly click on the link below to join the new Telegram channel:
https://hottg.com/AIBAXYSResearchUpdates
Telegram
AIB-AXYS Research Updates
Pronounced /A.I.B-Axees-Africa/
A channel aimed at updating our clients and investors on pertinent on market activity and economic development. AIB-AXYS Research Updates.
A channel aimed at updating our clients and investors on pertinent on market activity and economic development. AIB-AXYS Research Updates.
Good Morning.
Our group on Telegram is now open for the weekly discussion forum where we seek to have an interactive interaction on the capital markets. Join us:
hottg.com/AIBresearch
Our group on Telegram is now open for the weekly discussion forum where we seek to have an interactive interaction on the capital markets. Join us:
hottg.com/AIBresearch
Telegram
AIB-AXYS Research
Pronounced /A.I.B-Axees-Africa/
AIB-AXYS is engaged in Kenyan Stock Brokerage, Bond Dealing and Corporate Finance Advisory. Forum opens every Thursday from 8:00 to 17:00 EAT.
Research Disclosure: https://www.aib-axysafrica.com/stockrecommedations
AIB-AXYS is engaged in Kenyan Stock Brokerage, Bond Dealing and Corporate Finance Advisory. Forum opens every Thursday from 8:00 to 17:00 EAT.
Research Disclosure: https://www.aib-axysafrica.com/stockrecommedations
🔔 Announcement 🔔
We are moving.
Kindly click on the link below to join the new Telegram channel:
https://hottg.com/AIBAXYSResearchUpdates
We are moving.
Kindly click on the link below to join the new Telegram channel:
https://hottg.com/AIBAXYSResearchUpdates
Telegram
AIB-AXYS Research Updates
Pronounced /A.I.B-Axees-Africa/
A channel aimed at updating our clients and investors on pertinent on market activity and economic development. AIB-AXYS Research Updates.
A channel aimed at updating our clients and investors on pertinent on market activity and economic development. AIB-AXYS Research Updates.
🔔 Announcement 🔔
We are moving.
Kindly click on the link below to join the new Telegram channel:
https://hottg.com/AIBAXYSResearchUpdates
We are moving.
Kindly click on the link below to join the new Telegram channel:
https://hottg.com/AIBAXYSResearchUpdates
Telegram
AIB-AXYS Research Updates
Pronounced /A.I.B-Axees-Africa/
A channel aimed at updating our clients and investors on pertinent on market activity and economic development. AIB-AXYS Research Updates.
A channel aimed at updating our clients and investors on pertinent on market activity and economic development. AIB-AXYS Research Updates.
The account of the user that owns this channel has been inactive for the last 5 months. If it remains inactive in the next 28 days, that account will self-destruct and this channel may no longer have an owner.
The account of the user that owns this channel has been inactive for the last 5 months. If it remains inactive in the next 20 days, that account will self-destruct and this channel may no longer have an owner.
The account of the user that owns this channel has been inactive for the last 5 months. If it remains inactive in the next 17 days, that account will self-destruct and this channel may no longer have an owner.
HTML Embed Code: