Capital Markets

Bonus issue lifts NSE share to a high of Sh27.50


A Nairobi Securities Exchange staff (left) attends to a customer at the bourse. PHOTO | FILE

The Nairobi Securities Exchange share hit an all-time high of Sh27.50 Tuesday in the first trading session since the bourse announced a bonus issue that will capitalise Sh650 million from its cash reserves.

The NSE share gained the maximum allowable 10 per cent Tuesday having opened trading at Sh25, moving 48,700 shares. The exchange on Thursday afternoon announced a bonus issue that will see shareholders get a share for every three held, as its net profit for 2015 dropped by 4.5 per cent to Sh305.6 million.

READ: Investors in NSE get Sh650m bonus shares boost

Investors have, however, factored in the bonus issue —although the shares will eventually carry a price dilution upon listing — as well as the investment plans for the bourse that is set to introduce new products this year.

“The exchange is on course to launch the derivatives market this year, which is expected to boost the top-line performance of the exchange. Additionally, the exchange is also seeking to launch exchange traded funds which will also contribute to the performance of the exchange,” said Genghis Capital in a note.

The rest of the market had a quiet opening to the short week after the Easter break. The NSE 20 share index was down 5.8 points to close the day at 3,995, while equity turnover climbed by only Sh19 million to Sh432 million.

Top gainers included KenolKobil and Home Afrika, up 6.5 and 5.6 per cent respectively to Sh11.45 and Sh1.90. KenolKobil has announced it has put on hold plans to build a 22 storey office block.