This week the Central Bank of Kenya offered 91-day Treasury Bills for a total of Kshs.3 Billion. The total number of bids received was 154 amounting to Kshs.2.14 Billion, representing a subscription of 71.42%. Total bids accepted amounted to Kshs.688.93 Million.The market weighted average rate was 14.243 %, and the weighted average of accepted bids which will be applied for non-competitive bids was 11.570% up from 11.539% in the previous auction.

91 day bill rate increased!

Bulls will cheer todays Price Move which was dynamic and aggressive to the Upside.

The Nairobi All Share surged +2.74% for its biggest session Gain of the Year. The All Share closed at 150.45. The Nairobi NSE20 ramped +64.39 points higher to close at 4415.09. Equity Turnover slipped to 469.833m versus 1.239b.

Next week is key if we gather momentum we might well have witnessed the bottom for 2015.

Interestingly we have seen very heavy duty volumes of late [not least the market has now absorbed the Helios LLP Equity shareholding] and there is a sense that the Sellers are now done at these levels.

The Shilling was trading in a solid manner at 101.10 [which is a Signifier of its own given the decision not to raise interest rates earlier in the week].

If the Shilling continues to hold below the 103.95 2015 Intra day Low from last month, we might see a move back below 100.00

However, external forces are buffeting EM and Frontier Currencies not least Janet Yellen's FED who are expected to raise US interest rates in September, which will potentially roil these currencies again.

FTSE KE NSE15 index posting a big intraday rally. Current gains stand at 4.64% as it tries to reclaim the 200 level handle. Half an hour before market close. On the daily chart this is going to be a bullish reversal as well as confirmed by the index vaulting above fibo resistance @196.65 with the pivot at 191.18.

I'll start keep track of mpesa bank going forward. This is the main peg that will determine how low the market tanks next!

The rebound is running out of steam too early ahead of the 38.2% fibo retracement at 206.10 on FTSE KE NSE15. At least the rebound needs to test the 50% fibo retracement level at 211.75 to stem off the selling pressure. Otherwise the next drop will slice through the low at 187.79 with ease! If that happens,4300 support will breakdown easily on NSE20.

The Central Bank of Kenya(CBK)has today, Friday 14th August 2015,appointed the Kenya Deposit Insurance Corporation (KDIC) as a receiver for Dubai Bank Kenya Limited for a period of twelve months, pursuant to the provisions of Sections 43(1), 43(2) and 53(1) of the Kenya Deposit Insurance Act, 2012.

The appointment of KDIC as a receiver for Dubai Bank Kenya Limited has been carried out in the interest of its depositors, creditors and members of the public.

Dubai Bank has been experiencing serious liquidity and capital deficiencies which have raised the CBK’s concerns that it will most likely not be able to meet its financial obligations as and when they fall due.

One of the CBK’s primary role as a regulator is to foster the liquidity, solvency and proper functioning of a stable market-based financial system. CBK has closely monitored Dubai Bank’s daily cash reserve ratio from 14th July 2015 when the bank began breaching its daily cash reserve ratio requirements.

Owing to the consistently deteriorating cash reserve ratio position of Dubai Bank and its failure to honour financial obligations, including Ksh.48.18 million due to Bank of Africa Kenya Limited, the CBK is of the considered opinion that the bank will most likely fail to meet its financial obligations in the normal course of business.