TransCentury up 48 per cent at NSE on ‘speculation’

What you need to know:

The rally follows a return to profitability by the firm after a Sh4 billion debt forgiveness by its bondholders.

Investment firm TransCentury recorded the largest gain, 48.8 per cent, at the Nairobi Securities Exchange (NSE) last week as the counter continued a rally that has seen its price double in 10 trading sessions.

The share gained 8.9 per cent on Friday to trade at Sh9.75 from Sh6.55 at the beginning of the week and Sh4.50 a week earlier.

“Gaining for the tenth straight session on local investor speculative trading, TransCentury was up 8.9 per cent to Sh9.75 – the highest level in 2016,” said Standard Investment Bank.

The rally follows a return to profitability by the firm after a Sh4 billion debt forgiveness by its bondholders.

The company made a net profit of Sh1.3 billion in the first six months of the year, higher than its previous full-year peak of Sh1.1 billion profit in 2007.
This reversed the net loss of Sh676.1 million in the same period last year.

Investment firm, Centum was also on the gaining side, up 20.6 per cent during the week.

The counter gained eight per cent in the last trading session. It has disclosed that it planned to change its rules to allow it to buy back shares.