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Kenya gets one year extension on sugar imports

BY Soko Directory Team · March 28, 2015 01:03 pm

Comesa had given Kenya one year extension on sugar safeguards from the regional states, limiting the entry of sweetener into the country. This extension will protect the country from entry of cheap sugar from the Common Market for Eastern and Southern Africa (Comesa). The extension will operate on the basis of the terms and conditions that the sugar industry in the country had been given in 2007 as a prerequisite for the extension which include privatising state-owned mills, doing research into new early maturing and high sucrose content sugarcane varieties and adopting them, and paying farmers on the

basis of sucrose content instead of on weight basis. These is Kenya’s a fifth extension, arguing that some of its factories are at an infantry stage and not ready to compete with low cost sugar from regional members.

Housing Finance raises KES3.5bn in rights issue

Housing Finance raised KES3.5 billion through a rights issue that saw its shareholders offer up to KES9 billion to the company. Housing Finance priced issue at Sh30 per share, offering 116.6 million new shares at one for every two held. Shareholders applied for a total of 98.2 million shares worth KES2.9 billion in the original allotment. Housing Finance received applications for additional 202.1 million
shares worth Sh6 billion from shareholders, but will take only KES3.5 billion

Centum signs KES2bn sweetheart deal with UK duo for Vipingo

Centum reached a multi-billion shilling deal with two British brothers (Richard and Jeremy Robinow )that will see it withdraw its hostile takeover bid for Rea Vipingo, The deal, which was filed on Thursday with the capital markets regulator, will see Centum acquire 10,546 acres of prime Rea Vipingo land for KES2 billion in exchange for withdrawing its rival bid.

Longhorn to cross-list after subsidiaries make profit

Longhorn plans to cross-list on Dar es Salaam Stock Exchange, Uganda Securities Exchange and the Rwanda Stock Exchange. Longhorn has set aside KES120 million for the Tanzanian subsidiary and KES80 million
for the Ugandan one. For Zambia and Malawi, two other markets where the firm has expanded, penetration will be through an agency model. The cross-listing of Longhorn Publishers in neighbouring stock exchanges will take place once its subsidiaries in those countries become profitable.

Mumias seeks arbitration over Sh1bn Kenya Power bill

Kenya Power sued the Mumias sugar for the unpaid KES1.1 billion electricity bill and wants the court to freeze the firm’s assets until the amount is settled in full. Mumias claims that mediation by an independent intermediary was among the terms of the power purchase agreement that the two firms signed in 2009 thus wants the High court to refer the sh 1.1 billion dispute to arbitration.

E.A Breweries eyes rich buyers with luxury spirits outlet at Yaya

Beer maker East African Breweries Limited (EABL) has opened its first retail shop for high-end spirits at the Yaya Centre shopping mall, in which premium brands such as the Johnnie Walker & Sons Odyssey will
be selling for about KES160,000.The regional brewer has partnered with one of its top distributors to set up the multimillion shilling retail outlet dubbed Berries and Barrels in a bid to increase the uptake of its highly lucrative spirits brands.

Kenyan Stock Market

The NSE 20 share index went down by 1.17 percent w/w from 5,304.41 last week to close at 5,342.35. The NASI Index went up by 0.98 percent w/w from 172.47 last week to close at 174.16.

Turnover, total volumes traded and total market capitalization stood at KES 4.32 billion, 134.07 million and KES 2,431.64 respectively at the end of the week

EAC Markets

Uganda: The USE ALSI went up by 1.50 percent w/w to close at 2,040.27. The USE LSI also went up this week by 0.29 percent w/w to close at 324.52.

Rwanda: The RSE ALSI and the RSE RSI, remained constant to close at 137.33 and 234.63 respectively.

Tanzania: The DSE TSI declined by 1.38 percent w/w to close at 4,799.20. The DSEI lost 2.09 percent w/w closing at 2,605.04..

Global markets

The S&P 500 declined 1.59 percent w/w to 2,089.27. The Dow Jones Industrial Average shed off 1.56 percent w/w to 17,959.03. This was attributable to geopolitical events in Greece and Yemen as well as the rapid ascension of the dollar causing a retreat in profit expectations for the year.

The Stoxx Europe 600 Index went down 1.78 percent w/w to close at 404.00. European Central Bank’s tightening rules on Greece’s bailout spurred negative investor sentiment bringing down even energy shares despite the oil price rally coupled by the tension in Middle East.

The MSCI Asia Pacific Index closed down 0.07 percent w/w to 147.55. This was following a slump in the offshore market overnight after unexpectedly weak US durable goods orders and on worries that technology and biotech equities have become overvalued. Investors also fled the market after reports of airstrikes by Saudi Arabia in Yemen.

Dealing Desk’s View

The NSE 20 share index went down by 1.17 percent w/w from 5,304.41 last week to close at 5,342.35. The NASI Index went up by 0.98 percent w/w from 172.47 last week to close at 174.16. Turnover, total volumes traded and total market capitalization stood at KES 4.32 billion, 134.07 million and KES 2,431.64 respectively at the end of the week.

CIC Insurance was the week’s top gainer, increasing 12.43 percent to close at KES 9.95. Uchumi, Centum, NSE and Safaricom capped off the top five gainers appreciating by 7.96 percent, 6.78 percent, 6.12 percent and 4.73 percent respectively. Centum signed a KES2bn sweetheart deal with UK duo for Vipingo while NSE announced end of year results with Profit before tax increasing by 16.4 percent to KES 441.81mn owing to the 115.57mn one-off recovery of doubtful debt in 2013. Profit after tax went up by 22.0 percent from KES 262.42mn to 320.04mn for the year ended 2014.

Sameer Africa was the market’s top loser going down by 11.72 percent to close at KES 5.65. KenGen, Mumias, Kapchorua and Umeme capped off the top five losers shedding off 10.36 percent, 10.00 percent, 7.80 percent and 7.65 percent respectively. The top movers by volume were led by Safaricom which moved 37.65 million shares accounting for 28.08 percent of the total shares traded throughout the week. KCB Bank, Equity Group, Britam and Mumias were the top five most traded stocks in terms of volume. Top movers in terms of turnover were led by KCB Bank which traded shares worth KES 968.62mn accounting for 22.39 percent of the week’s turnover. Safaricom, Equity Bank, E.A Breweries and BAT Kenya, capped off the top movers by turnover.

Soko Directory is a Financial and Markets digital portal that tracks brands, listed firms on the NSE, SMEs and trend setters in the markets eco-system. Find us on Facebook: facebook.com/SokoDirectory and on Twitter: twitter.com/SokoDirectory

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