Peter Muthoka, the ousted CMC board chair. Photo/FILE
Shares of Kenya’s third largest automobiles dealer, CMC Motors, rose marginally in Tuesday’s trading, capping two days of sustained gains following announcement of boardroom changes late last week. (Read: CMC chairman ousted in fresh war)
The share, which closed at Sh13.55 on a volume of 385,000 shares, went up by 7.14 per cent on Monday when it moved 1.79 million shares in a block trade.
“This could be as a result of corporate actions that were announced,” said Mr Robert Munuku, an analyst with Drummond Investment Bank. The company announced that Mr Joel Kibe had taken over as the new chairman of the board, replacing Peter Muthoka who had held the position for five months. Last year the company made Sh406.6 million in profits. down from Sh927.1 million made in 2008.
Management change
Analysts Tuesday said that the stock could fluctuate at for the rest of the week as investor’s price in the change in management of the company.
Barclays Bank and Safaricom share prices remained stable at Sh12 and Sh3.10 despite the closure of their registers for dividends, with analysts saying that investors were being attracted to counters which appeared cheap.
“The prices are quite low at their current levels,” said John Kamunya an analyst with Dyer & Blair Investment Bank. Mr Kamunya said investors were being attracted to the Safaricom counter because they could be anticipating the share price to edge upwards in the future.
The rates have remained low as the sector has been experiencing intense competition.
On Tuesday, the Safaricom counter moved 36 million shares at an average price of Sh3.10, more than half of the entire day’s trading.
“Investors could be seeing that the counters are trading at a discount. Demand was quite high for Safaricom and for Barclays investors could be eyeing long term gains,” said Mr Munuku who added that Barclay’s dividend yield at the current price was “good”.
British-American shares which have been on a downward trend since their listing last week dropped further by six per cent to seven shillings with 153,000 shares changing hands. (Read: British American share drops further amid weak demand) On Tuesday, 52 million shares were traded at the NSE in 1,300 deals valued at Sh469 million. The NSE 20-Share Index went up 32.25 points to stand at 3430.92 points.
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