Investing: Bears on the run at the NSE, take cover

The Nairobi Securities Exchange has been on a bear trend in the past week. In fact, since the beginning of the year, the NSE 20-Share Index has lost a collective 5.5% to about 4,800 points from 5,117.43 points in January.

According to the head of Investax Capital Ndindi Nyoro, the current bear position at the market has two sides to it.

“On one hand, we have stocks such as Equity Bank, which are not exciting investors despite news that would otherwise propel their share price upwards such as the buy-out of a bank in DR Congo,” he says.  “On the other, we have an opportunity for value medium to long-term investors to take position as the bargained shares persist.”

SAFARICOM: Safaricom has been gyrating between Ksh17 to a low of Ksh15 per share. On Friday, though, the counter pulled itself from the woodworks, rallying to Ksh16.15 apiece.  According to Kevin Tuitoek, a research analyst at Genghis Capital, Safaricom has witnessed increased foreign participation. “A price increment was expected after the record Ksh32 billion profit. However, this has been countered by exit of foreign investors and muted demand from locals,” he notes, adding that the dip could have been as a result of investors waiting to see how far the counter could fall.
“This drop is temporary. The counter is intact in value and remains a good investment. It provided vantage points for investors and it will prop up towards the highs of Sh17.”
Mr Tuitoek is nonetheless quick to note that the rise will also be determined by the performance of the overall market.

Also Read >>> Exit of foreigners causes market jitters

FLAME TREE: This stock has been a prominent in both the gainers and losers pack in the past weeks. According to Mr Tuitoek, the stock is still in the price discovery position. “The rise and fall has largely depended on investor sentiments regarding its position after the acquisition of four food and snack brands from Chirac,” he says. On Friday, for instance, the counter opened at Ksh8.70 per share from Thursday’s closing price of Ksh8.15 and rose to a high of Ksh8.90 per share. “The uptake of the stock, though, could be positive based on the success of its diversification and expansion,” notes Mr Tuitoek.

KENYA AIRWAYS: Two weeks ago, Kenya Airways received a Ksh4.2 billion loan from the Treasury to help it ease its financial woes. However, according to Mr Nyoro, the bailout is a case of too little too late. “The company is struggling with debts spanning close to a billion dollars, turning the Ksh4.2 billion loan into a drop in the ocean on one hand and increasing its debt burden on the other,” he says. “It’s not a share worth taking a position.”

Currently, the national carrier is expecting to make a loss of not less than 25% of its previous year ended March 2014, in which it posted a net loss of Ksh7.8 billion and loss per share of Ksh6.35. Its results are due for release not later than next month. The counter is trading at around Ksh7.15. Over the past one year, the national carrier has traded at a low of Ksh6.40 per share and a high of Ksh12.60. (Daily Nation)

Don’t Miss >>> Kenya’s greediest banks on loans

Latest

Engineer Turned Away by 6 Banks Now Owns Multi-Billion Premium Hotel

In just 12 years, PrideInn Hotels & Resorts has grown from one hotel with 28 rooms to eight hotels in five counties.

Resignation of 3 Standard Group Directors Signals Big Trouble

Standard Group Directors: Media house announced through its Nairobi Securities Exchange filing that Dr Githinji Gitahi - who was an Independent, Non-Executive Director - had quit effective 10th November, 2023.

Tusker Oktobafest Rolls East African Cultures into One

From regional events across Kenya to inaugural gatherings in Uganda and Tanzania, and the Tusker Oktobafest grand finale in Nairobi, the festival harmonized traditions, celebrated diversity, and highlighted the rich cultural tapestry of the East African culture

 Carrefour Opens 24-Hour Store in Mombasa

This marks the carrefour third establishment in the coastal region, following the Centre Point Mall in Diani and City Mall Nyali stores.

Follow Us

Newsletter

Don't miss

Tusker Oktobafest Rolls East African Cultures into One

From regional events across Kenya to inaugural gatherings in Uganda and Tanzania, and the Tusker Oktobafest grand finale in Nairobi, the festival harmonized traditions, celebrated diversity, and highlighted the rich cultural tapestry of the East African culture

Lupita’s Little Brother Junior Nyong’o Charting His Own Path in Acting

Junior Nyongó, who is also a musician and a DJ and now a graduate of UC San Diego with an MFA in Acting, is crafting his own solid path in the world of acting with roles in major theatre productions.

Safaricom To Power Tusker OktobaFest Beer Festival

Safaricom’s involvement in OktobaFest as a technology and payments partner will focus on fostering seamless in-festival connectivity, empowering the youth and Gen Z community through Safaricom Hook, and powering digital payments through M-PESA.

Music Producers Launch Organization To Streamline Recording Industry

Recording Industry of Kenya (RIKE) was launched on 9th October 2023. Registered in 2022 as a not-for-profit organization, RIKE aims to promote the collective interests of producers of sound recordings in the country.

Nairobi’s Hero Bar Listed Among World’s 50 Best Bars

World Best Bars: Hero Bar in Nairobi continues to climb the list, moving up six places to No.62 and Johannesburg’s Sin + Tax comes in at No.94. Dubai new entry Ergo is at No.69 and Melbourne’s Byrdi has re-entered the list at No.61.

Kenyan DJs Face Off In Smirnoff Battle Of The Beats Season 3

The Smirnoff Battle of the Beats Season 3, a DJ competition, is poised to unleash an unprecedented musical frenzy countrywide.

The Highs And Lows Of Betty Kyallo, Sisters Show As Season 2 Ends

Kyallo Kulture has always been, above all, about sisterhood, and in Season 2 we have witnessed the charm of it - the ups that gave us wholesome moments as the sisters led by Betty Kyallo spent time together.

DStv Beats CNN, BBC To Become Most Admired Media Outlet In Africa

DStv, MultiChoice Group’s leading broadcast service, has been named...

MultiChoice Revises Subscription Fees For DStv, GOtv

MultiChoice has announced price adjustments on some of their...

Octopizzo: How I Make My Money

"I've been doing this for 12, 13 years. It reaches a point where you no longer need to prove that you can make a hit record," he stated.
BUSINESS TODAY
BUSINESS TODAYhttps://businesstoday.co.ke
editor [at] businesstoday.co.ke

Engineer Turned Away by 6 Banks Now Owns Multi-Billion Premium Hotel

In just 12 years, PrideInn Hotels & Resorts has grown from one hotel with 28 rooms to eight hotels in five counties.

Resignation of 3 Standard Group Directors Signals Big Trouble

Standard Group Directors: Media house announced through its Nairobi Securities Exchange filing that Dr Githinji Gitahi - who was an Independent, Non-Executive Director - had quit effective 10th November, 2023.

Tusker Oktobafest Rolls East African Cultures into One

From regional events across Kenya to inaugural gatherings in Uganda and Tanzania, and the Tusker Oktobafest grand finale in Nairobi, the festival harmonized traditions, celebrated diversity, and highlighted the rich cultural tapestry of the East African culture

LEAVE A REPLY

Please enter your comment!
Please enter your name here