EABL and Two Other Shares to Watch This Week

East African Breweries Limited (EABL) tops the list of counters that are expected to attract interest from equity and bond traders this week. This is as investors in the fixed income securities segment of the market prepare to receive their returns.

Investors who bought into EABL’s Ksh6 billion medium-term notes will this today Monday, 28^th September 2020, receive the 6^th interest rates payment. These payments will be made to bondholders appearing on the register that closed on 11^th September 2020.

The Ksh11 billion EABL medium-term note is in two tranches. The first tranche of Ksh5 billion, which had an annual interest rate of 12.95%, matured in March 2020. 

The second tranche of Ksh6 billion is still outstanding. It is unsecured, has an annual interest rate of 14.17% and matures in March 2022.

The next interest payment on this Fixed Rate Note, the 8^th in the program, is 29^th March 2021, while the 9^th and final payments will be made on 27^th September 2021 and 28^th March 2022.

In a notice to Nairobi Securities Exchange (NSE), Stanbic Bank -who are the bond’s fiscal agents and registrars – said, ” We wish to notify that the seventh interest payment on the East African Breweries Limited Tranche 2 will be paid on 28^th September, 2020.”

EABL is cross-listed on the Nairobi, Uganda, and Dar Es Salaam Stock Exchanges. Diageo, EABL’s parent company, has its ordinary shares listed on the London Stock Exchange (DGE).

Available data shows intense activity on EABL the previous week where it was one of the top gainers and prime movers.

When trading closed last Friday, 25^th September 2020, EABL moved a total of 64,900 shares with its share price edging up 0.77% to Ksh164.25 resulting in a turnover of Ksh10.65 million. Activity on this counter was dominated by foreign investors, at 68.7% participation.

Kenya Reinsurance Corporation remains a closely watched counter as investors position for its book closure on 9^th October, 2020.

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The company is expected to hold its 22nd Annual General Meeting(AGM)-through a virtual platform on 9^th October, 2020, where shareholders will approve payment of a Ksh0.10 dividend per share for the financial year ended 31^st December, 2019. This payment will be made to shareholders on the register by 9^th October, 2020. Payments will be made on 20^th November, 2020.

Kenya Re remains one of the most attractive counters in a bearish bourse where most listed firms are not rewarding shareholders, preferring instead to build cash reserves to shield from harsh pandemic-related effects on business.

Eyes on bankig stocks

Safaricom remains the favourite counter on the radar screens of investors, its huge market capitalization, and a huge attraction to foreign investors notwithstanding.

Foreign investors will also be keen to participate in banking stocks, especially in a market exhibiting bearish tendencies, with little options to choose from.

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