BY MARTIN IRUNGU
November has been a rather slow month for the bourse evidenced in the subdued movement in share prices, NSE 20 share index decline as well as the drop in the NSE all-share index.
The bear market has persisted with heavy declines as compared to rises as the market tries to adjust prices to reflect company fundamentals. This may have left investors trading on speculation with a bitter taste due to positions taken at higher prices.
The month also had listings by introduction of two firms in the Growth Enterprise Market section. These are Flame Tree Holdings Ltd and Kurwitu Ltd. Their introductions have had mixed reactions in the market with Flame Tree Holdings Ltd rising from Sh8.00 to Sh15 but later stabilising at Sh8.75 while Kurwitu Ltd listed at Sh1,250 and has since not traded after hitting Sh1,500.
The month had Centum Investments, Olympia Holdings, Safaricom, KPLC and Uchumi Holdings rising significantly. From a dip in September 2014, November saw Centum rise to Sh63.50 as it released its half-year results and also concluded on their 67.5% stake uptake in K-Rep Bank.
Olympia Holdings saw its share move to Sh6.50 from Sh3.25 with over 50% upside. KPLC released full-year financials that saw profits rise to about Sh6 billion, pushing its share to Sh17.50 from Sh15.90 before stabilising at Sh16.50. Uchumi Holdings, with its rights offering ongoing. had its share rise from Sh8.5 to Sh9.7 to counter the rights price of Sh9 per share. Safaricom released half-year results of Sh17 billion net profit. This made its stock touch an all-time high of Sh13.85, and this nudged speculators to release value having invested at Sh12.95. Further, the company declared aggressive efforts to segment its profits from various units as voice, data and M-Pesa. This will increase profits to new record highs.
The month’s decliners were Britam, Equity Bank, Housing Finance, and Mumias Sugar and Kenya Airways among others. Britam had the beginning of court battles between its former employees in their asset management unit now forming Cytonn and Acorn Ltd, a real estate developer partly owned by Britam.
This made the share tremble, shaking from Sh30 to about Sh25 as speculators opted to cash in as they watch the battle unfold. Equity, which shares directorship with Britam, was not spared either; despite releasing impressive nine-month results, the market did not seem to move its line but remained low with a put option continuously exercised.
Mumias Sugar touched its all-time low of Sh1.4 after announcing closure of the factory for about 45 days. This despite the closure being described as normal processes of the factory. The market took a toll on it by heavy sales. This has continuously reduced its price to record lows.
While various parties were engaged in trying to resuscitate the sugar industry, the market did not feel adequate processes specific to Mumias Sugar. Kenya Airways released its half-year results, declaring a Sh10.45 billion loss, occasioned by cancelled flights to West African countries due to Ebola, fuel costs, foreign currency losses.
As has been the trend in December over time, the market is usually subdued. This may not be different; the month is expected to be slow with investors taking holiday breaks
