Centum share hits one-year high on Kirubi bid approval

Investment company Centum has hit a one-year high of Sh30 per share boosted by rising demand after the regulator approved billionaire Chris Kirubi’s plans to buy more of the firm’s stock.

The counter has seen more than 2.3 million shares moved in just two trading sessions this week, more than the full-week totals for the first two weeks of October-which stood at between 1.5 million and 2.1 million.

The share was among several which made gains on resumption of trading after a system hitch halted trading on Tuesday.

Mr Kirubi said in an interview that he is yet to start buying Centum shares, meaning the increased demand is coming from other investors taking position on the counter.

“I have not activated my purchase yet. All I have got is permission from the regulator to do so,” said Mr Kirubi on phone from London.

READ: CMA exempts Kirubi from making a takeover offer on Centum

The centum share has gained by 18 per cent since the investor announced intention to up his stake, and has gained 126 per cent in the past one year, far above the NSE 20-Share Index gain of 20 per cent in the same period.

“Centum extended its gains, edging up further 4.3 per cent, to a new high of Sh30,” said Standard Investment Bank in a note to clients.

Mr Kirubi in mid-September issued a notice to buy 32.65 million additional shares of Centum, comprising of five per cent of the company which is also cross-listed on the Uganda Securities Exchange.

READ: Kirubi builds Sh1bn war chest for Centum shares

He was granted approval and an exemption by CMA from having to make a take-over offer for the company despite his shareholding going above a quarter of the listed firm’s issued shares.

Investor demand

The NSE 20-Share Index was up 0.62 per cent to stand at 4,970.88 points, while equity turnover jumped 258.5 per cent to Sh1 billion from Monday’s Sh3-4 million from pent up demand.

ARM Cement gained 3.9 per cent to hit a new 12-month high of Sh80 on strong foreign investor demand, keeping a trend of good performances from cement maker shares that also saw East Africa Portland Cement Company touch a new one-year high of Sh72.

Shares traded doubled from Monday’s 14 million to 39 million Wednesday, with Equity Bank the day’s top mover accounting for 24 per cent of trades also on strong foreign investor demand.

KenGen, which has posted an 87 per cent increase in earnings for the 2013 financial year, closed 1.8 per cent higher at Sh17.35. On the losing end Total Kenya continued to witness profit taking easing 6.6 per cent to Sh24.75.

Market capitalisation rose to Sh1.85 trillion from Sh1.83 trillion recorded on Monday following gains made by the big cap counters. Safaricom closed up 25 cents at Sh9.40, while East African Breweries Limited was up Sh5 to close at Sh315.