Weekly Equity Update 15th SEP 2017 Market Overview Market Perfomance Previous Today %Change Shares traded 188,327,000 136,140,300 -27.71% During the week, the equities market was on a downward trend with NSE 20, NASI and NSE 25 Equity Turnover (KES Bill) 5.72 4.57 -20.13% losing 1.5%, 0.7% and 0.4%, respectively, taking their YTD performance to 23.4%, 22.0% and Market Cap (KES Bill) 2,427 2,410 -0.70% Market Cap (USD Mil) 23.5 23.4 -0.32% 18.8% for NASI, NSE 25 and NSE 20 The market was weakened by shrinking large caps counters. NSE-20 Share Index 3,840 3,784 -1.46% Week’s volumes declined to 136.14Mn from 188.93Mn on low trades on telecommunication and banking NSE All Share Index 165.7 164.5 -0.70% NSE 25 Share Index 4,324 4,307 -0.40% sectors. Market turnover thinned by 20.75% to KES 4.57Bn from KES 5.76Bn. Foreign activity was at 51.6% 91-day Treasury Bills 8.130 8.134 0.05% with a net outflow of KES 1.55Bn. 182-day Treasury Bills 10.313 10.314 0.01% Safaricom closed the week with 8.74Mn shares trading at an average of KES 25.25 for a total value of KES 364-day Treasury Bills 10.920 10.930 0.09% Top Gainers & Losers 221.45Mn as the counter closed its book. Foreign activity, at 71.3%, continues to play a major role in the Week Close w-o-w % Shares Traded value drop with the telecom shedding KES 20.03Bn in market value on a w/w basis. Gainers Banking sector index gained 1.01% with the sector moving 51.38MN shares, representing 37.78% of total Sameer Africa Ltd 2.80 12.0% 16,000 week’s volume. KCB and Equity Group moved 24.1Mn and 18.0Mn shares at a losing price of 42.00 (- Standard Group Plc 35.75 8.3% 1,100 Olympia Capital Holdings Ltd 3.10 6.9% 5,700 0.59%) and KES 39.00 (-64%). NBK and I&M were the top sector gainers, up 4.29% and 4.03% to KES 10.95 Eveready East Africa Ltd 2.50 6.4% 129,500 and KES 129.00. TPS Eastern Africa Ltd 28.00 5.7% 1,352,700 Britam traded 0.68Mn with its value gaining 0.72% to KES 14.05 compared to KES 13.95 last week. IFC Losers ARM Cement Plc 13.7 -16.7% 1,527,400 completed entry into the insurer with a 10.3% ownership. Sanlam Kenya holding was the only other gainer, Nairobi Business Ventures Ltd 2.5 -15.3% 178,300 up 4.39% to KES 29.745 with 7,100 shares. CIC Group, Liberty Kenya, Kenya Re and Jubilee Insurance lost WPP Scangroup Ltd 18.1 -13.0% 88,000 4.31%, 3.35%, 2.35%, and 0.21% to close at KES 5.55, KES 13.00, KES 20.75 and KES 475.00 respectively. Kapchorua Tea Co. Ltd 81.0 -10.0% 100 Eaagads Ltd Ord 1.25 23.5 -9.6% 200 Kenya Airways exchanged 1.44Mn at KES 4.75, a 4.40% gain from KES 4.55 last week. TPS Serena advanced Actively Traded 5.66% to KES 28.00 while SMG value increased to KES 35.75 from KES 33.00. Safaricom Ltd 25.3 -1.9% 61,219,900 KCB Group Ltd 42.0 -0.6% 24,072,600 Equity Group Holdings Plc 39.0 -0.6% 18,005,100 KenolKobil Ltd 16.6 0.3% 5,036,800 Kenya Power & Lighting Co Ltd 10.6 -0.9% 3,228,000 1 STOCK PICK Price as at 52-week 52-week Target Stock 18/9/2017 low high P/B P/E EPS BVPS Price Upside Analyst's Call KPLC 10.65 6.00 12.00 0.33 2.05 3.87 33.62 16.81 58% Strong BUY Kengen 9.35 4.95 10.00 0.3 8.0 1.1 27.7 13.83 48% Strong BUY KCB 42.00 22.50 47.50 1.2 6.3 6.5 33.0 53.48 27% BUY Stanbic 80.00 58.00 88.00 1.1 7.2 11.2 74.0 99.96 25% BUY NIC 40.00 20.00 37.00 0.8 6.0 6.5 48.5 49.09 23% BUY Total 23.00 16.00 25.00 0.8 5.8 3.6 30.7 27.66 20% BUY Kenya -Re 20.75 17.50 24.50 0.6 4.6 4.8 34.4 24.20 17% BUY I&M Bank 129.00 74.00 126.00 1.7 6.6 18.6 73.5 148.95 15% BUY DTB 182.00 102.00 196.00 1.2 7.8 23.1 155.6 210.11 15% BUY Liberty 13.00 5.55 17.00 1.1 11.5 1.2 12.6 14.85 14% HOLD Equity Bank 39.00 23.50 45.00 1.9 8.9 4.4 21.1 42.63 9% HOLD Britam 14.05 9.00 15.90 1.5 10.9 1.3 9.2 15.35 9% HOLD Sanlam 29.75 18.00 40.00 1.1 5.9 4.9 27.3 31.63 6% HOLD BBK 10.35 7.00 12.00 1.3 8.0 1.3 8.1 10.95 6% HOLD COOP 16.60 9.75 18.00 1.3 7.3 2.2 12.9 17.42 5% SELL Umeme 14.00 12.20 18.20 1.3 1.4 9.7 10.5 14.58 4% SELL Centum 42.00 30.50 46.00 0.6 3.8 10.9 71.0 42.62 1% SELL Stanchart 240.00 165.00 243.00 1.6 9.0 25.9 150.3 243.45 1% SELL Kenol Kobil 16.60 10.70 16.75 2.4 9.7 1.6 6.7 13.29 -20% SELL 2 Corporate Actions Longhorn Publishers Ltd announced a final dividend of Kes.0.29 on 08-Sep-2017; Books Closure 08-Dec- 2017; Payment 08-Mar-2018. Standard Chartered Bank Kenya Ltd announced an Interim dividend of Kes.4.50 on 30-Aug-2017; Books Closure 21-Sep-2017; Payment 19-Oct-2017. Jubilee Holdings Ltd announced an Interim dividend of Kes.1.00 on 28-Aug-2017; Books Closure 15-Sep- 2017; Payment 06-Oct-2017. Bamburi Cement Ltd announced an Interim dividend of Kes.2.50 on 25-Aug-2017; Books Closure 22-Sep- 2017; Payment 27-Oct-2017. BOC Gases Ltd announced an Interim dividend of Kes.2.20 on 24-Aug-2017; Books Closure 22-Sep-2017; Payment 13-Oct-2017. Barclays Bank of Kenya Ltd announced an Interim dividend of Kes.0.20 on 15-Aug-2017; Books Closure 08- SECTOR TURNOVER REAL ESTATE Sep-2017; Payment 13-Oct-2017. AUTOMOBILES INVESTMENT & ACCESSORIES TRUST Stanbic Holdings Plc announced an Interim dividend of Kes.1.25 on 14-Aug-2017; Books Closure 11-Sep- AGRICULTURE 0% 0% 0% 2017; Payment 29-Sep-2017. BANKING KCB Group Plc announced an Interim dividend of Kes.1.00 on 03-Aug-2017; Books Closure 04-Sep-2017; TELECOMMUNIC 35% ATION & TECHNOLOGY Payment 31-Oct-2017. 45% KenolKobil Ltd announced an Interim dividend of Kes.0.30 on 03-Aug-2017; Books Closure 25-Aug-2017; COMMERCIAL AND SERVICES Payment 01-Oct-2017. 7% East African Breweries Ltd announced a Final dividend of Kes.5.50 on 28-Jul-2017; Books Closure 25-Aug- CONSTRUCTION & ALLIED MANUFACTURIN INSURANCE 2017; Payment 31-Oct-2017. G & ALLIED 0% INVESTMENT 2% ENERGY & 7% SERVICES INVESTMENT PETROLEUM Nation Media Group Ltd announced an Interim dividend of Kes.2.50 on 26-Jul-2017; Books Closure 15- 0% 1% 3% Sep-2017; Payment 29-Sep-2017. 3 Research Analyst Joshua Otiende- +254 (020) 327 0000 Ext 11732 Disclaimer This report has been prepared by KCB Capital Limited, a subsidiary of KCB Group. KCB Bank, its subsidiaries, branches and affiliates are referred to herein as KCB Group. 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