The FTSE NSE 15 edged up 2.2% to 116.1. The most actively traded counters were EABL (+0.9% to KES 229), KCB (+7.7% to KES 28.00) and Safaricom (+5.1% to KES 4.15). The value traded this week was very high at KES 3.3bn (about double the average weekly traded value of KES 1.6bn). This was buoyed by trading on EABL which had turnover of KES 1.5bn. KCB touched a 12 month high of KES 28.00 and was the week’s top gainer. Other counters also edging up strongly were Unga Group (+7.6% to KES 14.20), CIC Insurance (+5.3% to KES 3.95) and Safaricom. The top decliners were Car & General (-12% to KES 22.00), Kapchorua Tea (-10% to KES 117.00) and CfC Stanbic Holdings (-8.3% to KES 44.00). CfC Stanbic Holdings rights issue opened on Wednesday this week.
Standard Chartered Bank Kenya released details of its rights issue offer. The bank intends to raise KES 3.2bn before expenses by way of a renounceable rights issue of 22m new ordinary shares at a price of KES 145 per share. This represents a 33% discount to its current trading price and a 21% discount to the six months volume weighted average price of Stanchart shares up to and including 31 August 2012. The rights issue will open and trading in nil paid rights at the NSE will commence on 9 October 2012.
KenolKobil released its 1H12 results reporting a loss per share of KES 2.65 compared to an EPS of KES 1.50 in 1H11. Sales went up 25% to KES 103bn but cost of sales accelerated faster by 32% to KES 102bn. This resulted to a decline in gross profit of 70% to KES 1.8bn. Administration and operating costs went up 34% to KES 1.9bn which management attributes to high inflation across the region. Exchange losses shot up four fold to KES 4.2bn. Finance costs also went up 153% to KES 1.1bn. This resulted to a loss before tax of KES 5.6bn.
Longhorn Publishers has issued a profit warning for its FY12 results. Management has attributed the decline in earnings to reduced funding for free primary and secondary education as well as adverse macroeconomic factors such as high inflation, depreciation of the KES and high financing costs. These challenges have had an adverse effect on sales and necessitated unusually high provisions. In addition unfavourable developments in the company’s export markets resulted in drastically reduced sales for the period.
Mumias Sugar has appointed Chris Kisire as its new Finance Director with effect from 17 September 2012. Mr. Kisire replaces Peter Kebati who was appointed CEO of the company following the exit of Evans Kidero who resigned to vie for political office. Mr. Kisire currently serves as a director of Bamburi Cement. He has previously served as a finance director of media firm Standard Group Ltd and CEO of Sovereign Group an investment firm.
Source: African Alliance