Nairobi Securities Exchange
The Nairobi all-share index closed the previous trading session at 131.11, shedding 0.28%. The index has returned -21.24% year to date. The current 52-week range is 116.88 – 181.92.
The NSE 20 index closed yesterday’s trading session at 1723.78 and is currently trading at 1733.77, up 0.58%.
In the previous trading session, EVRD led the gainers at 9.72%, closing at KES0.79 per share, while LIMT came last, dropping 4.76% and closing at KES420.00 per share
In today’s early morning trading session, CABL leads the gainers at 6.90%. CTUM has dropped 5.99% so far. SCOM leads the overall volume traded with 698,000 shares traded so far.
Global Markets
Asia
Chinese property shares and bonds were dumped by investors on Wednesday after a media report that developer CIFI Holdings had defaulted. Credit intelligence provider Reorg said that CIFI had failed to pay for a certain non-standard debt. Its Hong Kong-listed shares then plunged 32.3%, hitting a record low.
Paraguay’s president Mario Abdo Benítez has called on Taiwan to invest $1bn in his country to help him resist “enormous” pressure to switch diplomatic recognition to rival China. Most of Taiwan’s remaining diplomatic allies are in Latin America and the Caribbean, but Beijing has been gradually prising them away with offers of aid, loans and trade.
HSI dropped 2.53% in yesterday’s trading session. HK50 rose 0.53% in the last trading session. Sensex shed 0.18%. Nifty slid 0.07%, closing the day at 16859.05. Tokyo’s Nikkei gained 1.09%.
Asian stocks open slightly weak today. HSI is up 1.23%, and Nikkei is down 0.89% in the early morning trading session.
Europe
The Bank of England took emergency action on Wednesday to avoid a meltdown in the UK pensions sector, unleashing a £65bn bond-buying programme to stem a crisis in government debt markets. The central bank warned of a “material risk to UK financial stability” from turmoil in the gilts market sparked by chancellor Kwasi Kwarteng’s tax cuts and borrowing plan last week.
Current and former officials in continental Europe are barely even trying to conceal their disappointment over the market turmoil that has greeted the UK government’s plan to fund £45bn of tax cuts, primarily for high-earners, by increasing debt. There is a further gut feeling that, as well as being a poorly timed and risky idea, which sent the pound tumbling and forced the Bank of England to intervene to halt historic falls in gilt prices, the crisis caused by the UK tax-cutting plan has exposed what is widely seen as flawed thinking behind Brexit.
Euro Stoxx 50 futures gained 0.23% in the previous trading session. EU50 rose 0.98%. UK100 rose 0.70%. Dax index futures rose 0.37%. DE30 gained 0.41%, closing the day at 391.57.
European stocks trade slightly higher today. Euro Stoxx 50 up 0.66% pre-market. Dax index futures up 0.78% pre-market.
US
The S&P 500 has historically shot up 11.5% in the year following peak inflation. A 50/50 mix of high and low P/E stocks offer good returns at attractive pricing in such an environment, a new BlackRock analysis shows. “Inflation peaks and market rallies often go hand in hand,” Tony DeSpirito, BlackRock’s chief investment officer for U.S. fundamental equities, wrote in a recent note in which he argued that price increases might have topped out with June’s 9.1% Consumer Price Index. DeSpirito analysed figures from 1927 and found that the S&P 500 gained 11.5% on average (excluding dividends) during the year following such inflationary peaks.
Yesterday marked the first time since April 17, 2020, that the S&P 500 gained roughly 2% or more in a single session without Apple, $AAPL, % also trading in the green.
US Futures trade slightly lower ahead of the market open. S&P 500 E- mini futures trades at -0.01% today. NASDAQ 100 E-mini futures trades at -0.16% today.
Key Events Today
GDP Growth Rate QoQ Final (Q2). 15:30 EAT
Fed Bullard Speech. 16:30 EAT
Fed Lane Speech. 20:00 EAT
Fed Daly Speech. 23:45 EAT
Earnings
Bed Bath & Beyond Inc
Crypto
Buying pressure is increasing on BTC on higher time frames. There is potential bullish divergence on the three-day and five-day charts. BTC regained the daily ten ema for the first time in sixteen days, an encouraging sign for bulls. However, BTC is currently being rejected by previous range lows and is at current range highs. It needs to break the $19500 level and use it as support in a low time frame for the bullish momentum to continue. Current range lows are at $18400. BTC is approaching the four-hour two hundred ema. BTC has struggled to break the ema in the recent past. BTC is bull flagging on the four-hour chart with targets slightly above previous highs. If BTC forms a lower high on the four-hour and breaks $19277, it may test range lows at $18400.
ETHBTC is forming lower highs and lower lows on low time frames which is bearish. The chances of ETHBTC breaking the 0.5 level and testing 0.0675 and 0.0652 are high. ETHBTC weakness is not suitable for alts. An indication that if BTC rallies soon, alts will lag.
USDT.D was rejected after breaking previous highs on the four-hour chart. However, it was a slight rejection, and USDT.D is currently forming a higher low. There is no significant sign of weakness on USDT.D. It needs to break 7.26% and use it as resistance on low time frames for it to drop lower. USDT.D is holding the daily ten ema. Bearish divergence on the four-hour chart is playing out weakly, indicating that USDT.D is strong at current levels.
Key Resistance Levels
19780. CC and previous day highs
20093. Naked point of control
20178 – 20218. Resistance zone
20883. Daily level resistance
21876. Daily level resistance
Key Support Levels
19280 – 19220. Support zone and previous resistance
18965 – 18871. Support zone
18480 – 18448. Support zone, range lows and previous day lows
17563. Weekly level support
Commodities
Gold gained 1.79% in the previous trading session. Gold is currently trading -0.79% today
USOIL rose 4.91% in yesterday’s trading session. USOIL is currently trading -0.42% today
UKOIL rose 3.62% % in the previous trading session. UKOIL is currently trading -0.58% today
Currencies
EURUSD is down 0.76% in today’s trading session
USDJPY is up 0.34% in today’s trading session
GBPUSD is down 1.13% in today’s trading session
USDCHF is up 0.63% in today’s trading session
USDCAD is up 0.59% in today’s trading session
AUDUSD is down 0.75% in today’s trading session
NZDUSD is down 0.88% in today’s trading session
AUDJPY is down 0.41% in today’s trading session
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