NEWS BITES - AFRICA
Kenya Airways Ltd. (NR:KQNA), Kenya's 2nd largest Commercial and services company by market cap, has sunk 22.0c (or 7.5%) in the past week to close at KES2.73 on Wednesday. This makes Kenya Airways stock the lowest performer in the NSE 20-Share Index of 13 stocks which was down 0.3% in the past week. This also indicates a relative price change of -7.2%. The volume was 1.4 times average trading per week of 344,792 shares. There were 402,700 shares worth KES1.2 million (US$11,211) traded in the past week. In the past week the market cap has declined KES329.2 million (US$3.2 million).
Stock Summary
| Currency | Kenyan Shilling (KES) 1 USD = 103.26 KES |
| Today's close (KES) | 2.73 |
| 52-Week Range (KES) | 2.7-12.9 |
| Sector | Commercial and Services sector |
| Shares Outstanding | 1,496,470,000 |
| Market Cap | KES4.1 billion (US$39.6 million) |
Highlights in today's Report:
SECTION 1 TODAY'S BEARISH SIGNALS
SECTION 2 TODAY'S BULLISH SIGNALS
RECAP FROM PREVIOUS REPORTS (UPDATED AT THE LAST PRICE OF KES2.73):
SECTION 3 THE PAST WEEK
SECTION 4 ONGOING BULLISH PARAMETERS
SECTION 5 ONGOING BEARISH PARAMETERS
SECTION 6 RANKING
SECTION 7 CORPORATE PROFILE
SECTION 1 KENYA AIRWAYS BEARISH SIGNALS
1.1 Downtrend:
Price/Moving Average Price and MACD:
+ The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 3.18 minus the 26-day EMA of 3.55 is negative suggesting a bearish signal. Both the 12-day EMA as well as the 26-day EMA are falling, another bearish signal.
+ The price to 50-day EMAP ratio is 0.7, a bearish indicator. The 50-day EMAP has decreased to KES4.09. A decrease is another bearish indicator.
Past Week:
+ Kenya Airways Ltd. is placed 21/22 in BuySellSignals' ranking of Kenyan performers in the past week, a percentile ranking of 9.
+ In the past week, volume was 1.4 times average and the shares were down 7.5%. Wednesday's close price is at a 6.0% discount to its 5-day Volume Weighted Average Price (VWAP) of KES2.91.
Past Month:
+ The price plummeted 43.7% in the past month.
+ Compared with the NSE 20-Share Index which fell 5.2% for the month, this represented a relative price decrease for Kenya Airways' stock of 38.5% for the month.
+ Falls to Rises: in the past month the number of falls outnumbered rises 14:4 or 3.5:1.
+ The present value of KES1,000 (PV1000) invested one month ago in Kenya Airways is KES563, for a capital loss of KES437.
1.2 Low Price Performance Indicator and rank of Kenya Airways in the Kenyan market:
| Description | KQNA Value | Rank In Market |
| Volatility % | 11.1 | In Bottom 7% |
SECTION 2 KENYA AIRWAYS BULLISH SIGNALS
Oversold/Bullish Signals:
+ The Relative Strength Index (RSI) of 4.3 has breached the oversold line of 30, suggesting the price decrease of 4.3% in the last 14 days is unusually high.
+ The stock is oversold according to the Williams % R indicator of -98.6, suggesting the price is close to its 14-day low of KES2.70.
+ The Money Flow Index [MFI] is 4.2 suggesting an oversold 14-day trend, being under 20.
RECAP FROM PREVIOUS REPORTS (UPDATED AT THE LAST PRICE OF KES2.73):
SECTION 3 THE PAST WEEK
3.1 Snapshot: Kenya Airways stock was down 22.0c or 7.5% in the past week. Volume in the week was 1.2 times average trading of 344,792 shares. It underperformed the NSE 20-Share index in 3 out of 5 days.
| Day | Kenya Airways | Close price [KES] | Price change % | Relative change % | Comment |
| Tuesday | In bottom 1% performers of NSE 20-Share Index in past month | 2.8 | -5.1 | -5.1 | Steepest Fall |
| Friday | Closes at 17.8% below VWAP | 2.95 | 0 | 0.5 | Price fall on slipping relative strength |
| Thursday | In bottom 1% performers of Kenyan market in past month | 2.95 | 0 | -0.5 | Price fall on slipping relative strength |
| Wednesday | In bottom 1% performers of NSE 20-Share Index in past month | 2.95 | -3.0 | -2.7 | VI*=2.4 |
| Tuesday | In bottom 1% performers of NSE 20-Share Index in past week | 3.04 | 1.3 | 2.2 | Top Rise; VI*=5.2 |
[Volume Index (VI); 1 is average]
3.2 Volatility:
+ Kenya Airways is at a discount of 78.9% to its 12-month high of KES12.95 on October 05, 2018. It is also at a premium of 1.1% to the 12-month low of KES2.70 on August 14, 2019.
SECTION 4 ONGOING BULLISH PARAMETERS
4.1 Turnover Rate & Turnover Period:
+ The turnover rate in the 12 months to date was 5.3% (or a turnover period of 18 years 9 months). The average length of ownership of the stock is 1.4 times the average holding period of 13 years 3 months for stocks in the NSE 20-Share Index suggests a larger number of core investors, making a long-term investment safer.
SECTION 5 ONGOING BEARISH PARAMETERS
5.1 Declining ADVT past five years
Avg. Daily Volume Traded 12 months ended Aug 14, thousand shares
| Year | ADVT |
| 2019 | 86.2 |
| 2018 | 182.6 |
| 2017 | 468.7 |
| 2016 | 466.8 |
| 2015 | 327.5 |
In the past five years, Average Daily Volume of Trading (ADVT) has decreased 73.7% to 86,198 shares.
5.2 Declining VWAP
Past five years, 12 months ended Aug 14 (KES)
| Year | High Price | VWAP | Low Price |
| 2019 | 12.95 | 6.34 | 2.7 |
| 2018 | 25.6 | 16.4 | 8.7 |
| 2017 | 30.8 | 22.46 | 13.2 |
| 2016 | 25.8 | 19.65 | 14.4 |
| 2015 | 46.0 | 32.8 | 20.0 |
In the past five years Volume Weighted Average Price (VWAP) has decreased by 80.7% to KES6.34. Based on a dynamic start date of five years ago, there have been declines in VWAP in 4 out of 5 years.
5.3 Declining Average Daily Turnover
Past five years, 12 months ended Aug 14 (KES thousand)
| Year | Average Daily Turnover |
| 2019 | 488.4 |
| 2018 | 1370.0 |
| 2017 | 2590.1 |
| 2016 | 2257.1 |
| 2015 | 2686.1 |
In the past five years, average daily share turnover has decreased 81.8% to KES488,430 (US$4,730). This suggests decreased liquidity.
SECTION 6 KENYA AIRWAYS RANKING
Rank of Kenya Airways in the NSE 20-Share Index [out of 16 stocks], in the Total Kenyan Market [out of 40 stocks] and in the Commercial and services sector [out of 5 stocks]
| Description | Value | In NSE 20-Share Index | In Total Kenyan Market | In Commercial and services sector |
| MCap (KES) | 4.1B | 12 | 21 | 3 |
| Total Assets (KES) | 182.1B | 5 | 9 | 2 |
| Revenue (KES) | 110.2B | 3 | 3 | 1 |
| Net Profit (KES) | (25.7B) | 12 | 33 | 5 |
| Net Profit Margin % | (23.4) | 9 | 25 | 3 |
| PV1000 (1Year) KES | 265 | 16 | 40 | 5 |
SECTION 7 CORPORATE PROFILE
7.1 Activities
Kenya Airways operates in aviation industry. The Company is engaged in international, regional and domestic carriage of passengers and cargo by air, the provision of ground handling services to other airlines and the handling of import and export cargo. The Company operates domestic flights and flies to 41 destinations in Africa, Middle East, Asia and Europe. The Company has 24 aircraft in operation, either owned or on operating leases. These comprised four Boeing 777 wide body jets, six Boeing 767 wide body jets, 10 737 narrow body jets, two Embraer 170 regional jets and two SAAB 340B turboprops
7.2 Issued Capital and MCap
Based on 1,496,470,000 issued shares the market capitalisation is KES4.1 billion (US$39.6 million).
COMPANY IDENTIFIERS
Physical Address: Airport North Road, Embakasi PO Box 19002 Nairobi, 00501 Kenya
State/Province/Country: Kenya
Exchange: The Nairobi Stock Exchange
ISIN: KE0000000307
NR:KQNA; KN:KQNA; KQNA.NR
RIC: KQNA.NR
Source: www.BuySellSignals.com