Dividend Rush Powers Rally in KenGen Share Price

Kenya Electricity Generating Company Plc (KenGen) was the top price gainer at the Nairobi Securities Exchange (NSE) on Friday, 16^th October, 2020, as the stock market took a break for the weekend.

Its share price rose 4.40% to Ksh5.22 on Friday compared to Ksh5 in the previous trading session on Thursday. This was on a volume of 47,800 shares transacted in  25 deals, resulting in a turnover of Ksh249,270, which was dominated 100% by local investors.

The KenGen Board has recommended a final dividend of Ksh0.25 for the year for every ordinary share of Ksh2.50 held, which amounts to Ksh1.649 billion. This is compared to Ksh0.40 paid in 2018, which amounted to a total dividend payout of Ksh2.638 million.

KenGen is scheduled to hold its Annual General Meeting (AGM) on Thursday, 22^nd October 2020. Shareholders are expected to approve recommendations made by directors for payment of a first and final dividend for the year ended 30^th June 2019 of Ksh0.25 per ordinary share held.

If shareholders approve, the dividend will be paid on or about Thursday, 17^th December 2020 to members whose names appear in the company’s register as at the close of business on Thursday, 22^nd October 2020.

To facilitate payment, the register of members will remain closed from Friday, 23^rd October 2020 to Monday, 26^th October 2020.

Apart from KenGen, the other top price gainers included Bank of Kigali, whose share price rose 5.36% to Ksh13.75, Liberty Kenya Holdings whose price appreciated 5.26% to Ksh8, BAT which recorded a rise in share price by 3.87% to Ksh349 and TPS Serena which rose 2.39% to Ksh15.00.

The worst performers were led by Flame Tree Group, which fell 9.09% to Ksh1.30, Home Afrika, which slid 9.09% to Ksh0.40, HFCK, which lost 7.16% to trade at Ksh3.63 and Olympia Capital Holdings, which declined 6.96% to Ksh2.14. Closing the list of top five worst performers was Kapchorua Tea Kenya Plc, which fell 6.83% to KSh 75.00.

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Safaricom was the most heavily traded counter at the bourse with a volume of 2.4 million, followed by I&M Holdings( 501,300), KPLC(415,400), Equity Group(291,000) and KCB(127,700).

The benchmark NSE All Share Index (NASI) declined 0.09 points to close at 139.65. The NSE 20 Share Index gained 0.91 points to close at 1814.17. The NSE 25 Share Index gained 2.20 points to close at 3220.54

There was one contract valued at Ksh30,000 concluded during Friday’s transaction on the derivatives market. This was a decline compared to the 2 contracts valued at Ksh60,100 concluded during the previous trading session.

The bonds market had a turnover of Ksh2.85 billion transacted in 48 deals against the Ksh1.62 billion worth of bonds transacted previously.

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