Car & General stock the biggest gainer as activity slows down

The Nairobi Securities Exchange (NSE) shares exhibited mixed fortunes ahead of the holiday season when activity normally slows down.

The NSE 20 Share Index dropped 37.80 points to close at 5,135.97 points in Wednesday’s trading while market capitalisation fell to Sh2.33 trillion from Sh2.36 trillion recorded the previous day.

Analysts said they expected the trading to decelerate as the holiday season kicks in with the first public holiday of the month Friday.

“With the Christmas festive period around the corner, we anticipate the NSE will experience heightened distribution activities as investors lock in gains made earlier in the year,” said analysts at Genghis Capital.

Turnover was, however, up in Wednesday’s trading with shares worth Sh989.4 million exchanging hands, up from Tuesday’s Sh799.6 million.

Car & General was the biggest gainer with its stock rising to Sh53.50 from Sh49, a 9.18 per cent increase. On the losing side Eaagads saw its share price drop by 9.50 per cent to Sh40.50 from Sh44.75 a day before.

Equity Bank, Safaricom and East African Breweries Limited (EABL) accounted for the lion’s share of trading which was mainly driven by foreign investors.

“Accounting for 41 per cent of market activity, EABL and Equity Bank were the leading movers on the back of foreign investor trading,” said a market report by Standard Investment Bank.

Market activity has also received some boost via the NSE self-listing with the share rising by 118 per cent three months after the bourse self-listed.

The NSE’s share price closed at Sh20.75 in Wednesday’s trading, 2.2 times its September 9 Sh9.50 debut price on initial public offering (IPO) that raised Sh627 million.

Over the last three months the share has traded at between Sh28 and Sh15 since its listing.  Kurwitu Holdings and Flame Tree Group have also listed but on the NSE’s Growth Market Enterprise Segment (GEMS).

The three newly-listed companies have added some vibrancy but analysts expect more trading on their stocks in future.

READ: Sharia firm third to list on NSE's growth segment

“They have not picked up momentum yet,” said Agnes Achieng, a research analyst at Sterling Capital.

Atlas Development, East African Data Handlers and Empire Microsystems are other SMES that have said that they plan to list on the GEMS by the end of this year.

READ: Empire board gives go ahead for IT firm to list in three months

Burbidge Capital is the nominated advisor for Atlas’s listing while Equity Investment Bank will handle both listings for East African Data Handlers and Empire Microsystems.