Weekly Equity Update 22nd SEP 2017 Market Overview Market Perfomance Previous Today %Change Shares traded 136,140,300 67,746,900 -50.24% The market saw E.A Portland Ltd gain 9.3 percent during the week to top the list of biggest gainers. Equity Turnover (KES Bill) 4.57 1.89 -58.62% Market Cap (KES Bill) 2,410 2,431 0.86% The company’s sales revenue fell by 19% year-on-year to US$35.9m in 2016 from US$44.6m in Market Cap (USD Mil) 23.4 23.5 0.44% 2015. It made a loss of US$5.15m compared to a loss of US$7.19m in 2015,ARM Cement on the NSE-20 Share Index 3,784 3,764 -0.52% other hand was the biggest looser having shed 10.9 percent week on week, the company has been NSE All Share Index 164.5 165.9 0.86% NSE 25 Share Index 4,307 4,340 0.76% grappling with issues after an expansion pushed the firm into debts and left several subsidiaries 91-day Treasury Bills 8.134 8.129 -0.06% dormant. 182-day Treasury Bills 10.314 10.317 0.03% In the insurance segment, Britam gained 6.4 percent week on week as the best performing 364-day Treasury Bills 10.930 10.959 0.27% insurance stock moving 600,000 shares. The Insurance Regulatory Authority (IRA) has delisted Top Gainers & Losers nine insurance brokerage firms for failure to comply with the Insurance Act, barring them from Week Close w-o-w % Shares Traded Gainers handling any old or new business. In Its latest report AKI reported that the industry expanded by E.A.Portland Cement Co. Ltd 29.25 9.3% 100 13.4 percent, gross premiums now standing at KSH 174Billion. Britam Holdings Plc 14.95 6.4% 600,000 KCB was the most actively traded stock with 8.3M shares being moved at a week’s close of Eaagads Ltd 24.75 5.3% 1,100 Barclays New Gold ETF 1325.00 4.5% - KSH43.00.The banking sector is expected to see activity on the bank of a possible revision of the Kenya Re Insurance Corporation Ltd 21.50 3.6% 874,100 interest rate cap which has affected credit flow in the market as well as the companies bottom-line. Losers During the week, the equities market recorded mixed trends with NASI and NSE 25 gaining 0.9% ARM Cement Plc 12.2 -10.9% 460,800 Nairobi Business Ventures Ltd 2.3 -10.0% 74,800 and 0.8%, respectively, while NSE 20 lost 0.5%, taking their YTD performance to 24.4%, 22.9% Kapchorua Tea Co. Ltd 74.0 -8.6% 2,000 and 18.2% for NASI, NSE 25 and NSE 20, respectively. Equity turnover declining by 58% w/w to Express Kenya Ltd 3.3 -8.3% 1,200 KES 1.8 Billion. TPS Eastern Africa Ltd 26.0 -7.1% 10,300 Actively Traded KCB Group Ltd 43.0 2.4% 8,311,100 KenGen Co. Ltd 9.0 -4.3% 3,058,100 KenolKobil Ltd 16.6 -0.3% 2,715,900 Equity Group Holdings Plc 39.5 1.3% 2,685,000 The Co-operative Bank of Kenya Ltd 17.0 2.4% 2,298,500 1 STOCK PICK Price as at 52-week 52-week Target Stock 22/9/2017 low high P/B P/E EPS BVPS Price Upside Analyst's Call KPLC 10.25 6.00 12.00 0.33 2.05 3.87 33.62 16.81 64% Strong BUY Kengen 8.95 4.95 10.00 0.3 8.0 1.1 27.7 13.83 55% Strong BUY KCB 43.00 22.50 47.50 1.2 6.3 6.5 33.0 53.48 24% BUY Stanbic 79.50 58.00 88.00 1.1 7.2 11.2 74.0 99.96 26% BUY NIC 39.50 20.00 37.00 0.8 6.0 6.5 48.5 49.09 24% BUY Total 23.25 16.00 25.00 0.8 5.8 3.6 30.7 27.66 19% BUY Kenya -Re 21.50 17.50 24.50 0.6 4.6 4.8 34.4 24.20 13% HOLD I&M Bank 125.00 74.00 126.00 1.7 6.6 18.6 73.5 148.95 19% BUY DTB 184.00 102.00 196.00 1.2 7.8 23.1 155.6 210.11 14% HOLD Liberty 13.40 5.55 17.00 1.1 11.5 1.2 12.6 14.85 11% HOLD Equity Bank 39.50 23.50 45.00 1.9 8.9 4.4 21.1 42.63 8% HOLD Britam 14.95 9.00 15.90 1.5 10.9 1.3 9.2 15.35 3% SELL Sanlam 29.50 18.00 40.00 1.1 5.9 4.9 27.3 31.63 7% HOLD BBK 10.40 7.00 12.00 1.3 8.0 1.3 8.1 10.95 5% HOLD COOP 17.00 9.75 18.00 1.3 7.3 2.2 12.9 17.42 2% SELL Umeme 19.95 12.20 18.20 1.3 1.4 9.7 10.5 14.58 -27% SELL Centum 41.25 30.50 46.00 0.6 3.8 10.9 71.0 42.62 3% SELL Stanchart 238.00 165.00 243.00 1.6 9.0 25.9 150.3 243.45 2% SELL Kenol Kobil 16.55 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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