NSE 20 Share Index hits six-year high with 5200 points

The Nairobi Securities Exchange (NSE) 20 Share Index crossed the 5200 mark in Tuesday trading, with eight counters touching one-year highs.

The index rose by 34.17 points to close at 5,217.25, which is a six-year high.

NSE share, which started trading mid last week, continued to touch new highs but looks to be hitting a ceiling after it gained a modest Sh0.25 to close at Sh23.50 a unit.

“Supply outweighed demand for most part of the day as investors cashed in on the capital gains made,” said Standard Investment Bank.

Centum Investment continued to rally touching another new high at Sh62, driven by interest from local investors. Investors have shown confidence in the investment company brushing off the controversy facing its Sh170 billion tender to construct a coal energy plant in Lamu.

Banking counters Standard Chartered, KCB and Equity traded at one-year highs as investors sought to get into the profitable sector.

Equity has received a one-year trial licence to test its thin-sim technology in offering mobile services. It traded at Sh53 a unit.

KCB closed at an average Sh59 a share with 3,727,800 units changing hands. Standard Chartered touched Sh340 during the day’s trading but closed at an average Sh336 a share.

Shares worth Sh1.5 billion were traded, the highest turnover recorded at the bourse in the last three months, on the back of active large counters.

Some of the largest movers included petroleum firm Kenol Kobil – with more than eight million shares traded – and Kenya Power, which moved 6,149,500 shares.

Insurance counters Jubilee and Britam also touched one-year highs, with Jubilee trading at an average Sh421 and Britam at Sh32. Britam is expected to increase its shareholding in Housing Finance by acquiring a 24.76 stake owned by Equity Bank.

S.Sudan deadline

Safaricom, which closed its books to a Sh0.47 dividend Tuesday, dropped marginally to Sh12.85 from Sh12.90, with 15,424,700 shares changing hands.

On the close of trading South Sudan announced it will require all expatriates working in subsidiaries operating in the country to be replaced by October 16, which could affect several listed companies operating in the unstable country.