Market News

Jubilee Holdings hits a 28-month high at the NSE

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A Nairobi Securities Exchange employee checks stock trading. file photo | nmg

The Jubilee Holdings #ticker:JUB share has climbed to a 28-month high of Sh500, cementing its position as the Nairobi Securities Exchange’s (NSE) most valuable insurance firm by market capitalisation.

Jubilee was up by Sh15 on Thursday to close at its highest level since August 2015, adding Sh1.08 billion to its market capitalisation that now stands at Sh36.24 billion.
The gains were, however, on thin volumes with the counter trading just 3,600 shares last week.

The second most valuable insurer, Britam Holdings #ticker:BRIT, has been one of the better performers in the sector over the past year with its share price of Sh13.80 representing a gain of 33.5 per cent over the past 12 months. Its market cap currently stands at Sh26.87 billion.

Britam, however, issued a profit warning on Friday, which could have a negative effect on its share price this week as investors adjust to expectations of lower earnings.

READ: Britam now ninth NSE-listed firm to issue profit warning

Its net profit for the period will come down from the Sh2.4 billion it reported in 2016 when it benefited from adoption of a new valuation system that depressed its liabilities.

It had already reported a 44 per cent drop to Sh995 million in its net profit for the half year to June 2017.

Jubilee on the other hand reported a profit growth of 19 per cent to Sh1.88 billion in the six- month period, aided by gains in its investments in the NSE where share prices have been going up since last March.

Net value gain from investments in government paper and equities stood at Sh1.3 billion by June 30 compared to a loss of Sh364.91 million a year earlier, a growth of 455.6 per cent.