Markets & Finance

NSE rises above 5200 points as Mumias rebound continues

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Mumias Sugar factory. The firm’s stock went up 9.6 per cent. PHOTO | FILE

The NSE 20 share index climbed above the 5200 mark for the first time this year Thursday even as market turnover fell on reduced activity on large-cap counters.

Centum, Safaricom and KCB all shed gains they made on Wednesday, but this was balanced out by slight gains recorded largely on medium-cap counters that helped the market close up seven points at 5201.

Centum was cooling off a boost by the dismissal of a petition contesting its Sh164 billion Lamu coal power plant tender award. The counter lost five per cent Thursday to close at Sh66 on profit taking.

The counter had made a gain of 5.3 per cent on Wednesday in reaction to the High Court verdict on Tuesday.

Safaricom also saw a reversal of momentum. Having looked set to surpass its all-time high price of Sh15.15 in Wednesday’s trading, the counter retreated 1.7 per cent to close the day at Sh14.60.

KCB closed the day lower by 1.7 per cent at Sh58 on foreign selling pressure.

“More than half of turnover was from foreign investors, largely selling. The market is being held back by a combination of the US unwinding its quantitative easing and the new capital gains tax, giving foreign investors additional reasons to exit,” said ABC Capital corporate finance manager Johnson Nderi.

Total market turnover stood at Sh418 million on 18 million traded shares, down from Sh513 million recorded on Wednesday when 24 million shares traded.

READ: Capital gains tax expected to hit long-term investment

Troubled Mumias Sugar however continued a surge going up 9.6 per cent to close at Sh2.95 on bailout hopes.

According to analysts at Standard Investment Bank (SIB), the positive run was on the back of local investor speculative trading.

The share whose one week gain is now 55 per cent once again led the market, and is now looking likely to break the Sh3 barrier for the first time since June last year.

Oil marketers KenolKobil and Total gained following the announcement of lower fuel prices, with sales likely to improve as motoring becomes cheaper for Kenyans.

Over the past two trading sessions, Total has gained seven per cent to Sh26.75, while KenolKobil is up 6.3 per cent to Sh9.30.

“The oil marketers stand to face improved profitability if volumes sold increase,” said SIB in a market note.

Other gainers in the market Thursday included Standard Group which was up 9.2 per cent to Sh38.75, Eaagads up 5.8 percent to Sh41.25 and Car & General which was up four percent to Sh52.