Mumias shareholders approve KES 4bn cash call to raise capital

Mumias shareholders approve KES 4bn cash call to raise capital

Mumias Sugar shareholders have approved a proposal to inject fresh capital through a rights issue. Under a new plan, which is part of the company’s recovery initiative, Mumias Sugar will issue an additional

three billion shares taking the total issued shares to about KES 4.6 billion. Each shareholder will then be given an opportunity to own more shares at a proportional rate but with no restriction to transfer
or on the number of transfers. The ailing sugar miller expects to raise KES 4 billion through the cash call.

Kurwitu set to borrow KES 187m from investors

Shareholders of listed Islamic investments services provider Kurwitu Ventures are set to lend the company KES 187mn in the form of convertible debt this year. Kurwitu has yet to carry out any investment
since it listed on the Nairobi Securities Exchange’s Growth Enterprise Market Segment (GEMS) in November last year. The company’s accounts for 2014 show it returned zero revenue for a second straight year, with expenses running to KES 8.12mn. It recorded a net loss of KES 5.68 million in the period. Minutes of its AGM held on 31st March 2015 show that shareholders also approved the creation of an
additional 125,000 shares which are likely to be taken up by shareholders who opt to convert their loans to equity.

Eveready in manufacturing partnership bid with Orbit Chemicals

Eveready E.A is set to enter into a joint venture with manufacturing firm Orbit Chemicals that will see the battery maker deepen its diversification by producing more personal care products. The Nairobi
Securities Exchange (NSE)-listed company has, in a notice, indicated that it will seek shareholder approval mid next month to form a joint venture company of equal stakes with Orbit Chemicals with the aim of producing common goods. Orbit Chemicals is a 43-year-old company that primarily supplies industrial chemicals to several firms while also manufacturing soaps, petroleum jelly, hand gels, detergents, fertilizers, liquid detergents and washing powders.

Tobacco firm sues over new regulations

BAT Kenya has sued the Health Cabinet Secretary, the Tobacco Control Board and the Attorney-General, seeking to temporarily stop the implementation of the Tobacco Control Regulations 2014, which become effective on 5th June 2015. The regulations were first published on 5th December 2014 gazette notice and on February 2 in two newspapers. The company says it requires at least nine months after being made aware of the technical information to prepare and print pictorial health warnings. The regulations are set to be implemented exactly six months after being published in the Kenya Gazette, and yet tobacco manufacturers like themselves could be caught on the wrong side of the law.

ARM eyes State projects with new high grade cement

Athi River Mining has joined the list of manufacturers producing high grade cement that is suitable for heavy duty construction works such as bridges, skyscraper foundations, pre-cast slabs and beams and railway sleepers. This is after it was issued with a Kenya Bureau of Standards certificate to produce the cement late last year. The cement is given a rating 52.5 megapascal (MPa) as per the industry grading.

Dealing Desk’s View

The NSE 20 went down by 0.60 percent w/w to close at 5093.00 while NSE ALSI went up by 2.12 percent w/w to close at 173.20. Turnover, total volumes traded and total market capitalization stood at KES 3,029.88 million, 80.64 million and KES 2,422.26trn respectively at the end of the week.

Flame Tree was the week’s top gainer, going up 15.52 percent to close at KES 10.05. Jubilee, Kapchorua, Safaricom and Eaagads capped off the top five gainers appreciating by 9.62 percent, 8.46 percent, 8.18 percent and 7.91 percent respectively.
Crown Paints was the market’s top loser going down by 13.68 percent to close at KES 101.00 Home Afrika, Car & General, Home Afrika and Kenya airways capped off the top five losers shedding off 9.09 percent, 8.54 percent, 8.16 percent and 6.62 percent respectively.
The top movers by volume were led by Safaricom which moved 24.78 million shares accounting for 30.73 percent of the total shares traded throughout the week. KCB Bank, Equity Group, Mumias Sugar and Centum 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 851.08mn accounting for 28.19 percent of the week’s turnover. Safaricom, Equity Group, E.A. Breweries and Centum, capped off the top movers by turnover.

Kenyan Stock Market
The NSE 20 went down by 0.60 percent w/w to close at 5093.00 while NSE ALSI went up by 2.12 percent w/w to close at 173.20.
Turnover, total volumes traded and total market capitalization stood at KES 3,029.88 million, 80.64 million and KES 2,422.26trn respectively at the end of the week.

EAC Markets
Uganda: The USE ALSI edged up by 2.00 percent w/w to close at 2057.69. The USE LSI remained constant this week to close at 324.14.

Rwanda: The RSE ALSI and the RSE RSI declined by 0.01percent and 0.06 percent w/w respectively to close at 137.14 and 232.99 respectively.

Tanzania: The DSE TSI declined by 1.43 percent w/w to close at 4,750.76. The DSEI went up by 1.00 percent w/w closing at 2720.14.

Global markets
The S&P 500 went down 0.70 w/w to close at 2,090.00. The Dow Jones Industrial Average also went down 0.50 percent w/w to 17,946.00. U.S. stock futures took a sudden, sharp dive south on Friday after a futures contract tied to some Chinese stocks plunged after a regulatory change

European stocks dropped the most since March, extending a weekly decline, amid bank losses and growing concern over Greece’s negotiations with creditors The Stoxx Europe 600 Index slid 1.4 percent to 405.07. The gauge slumped, along with China’s equity-index futures, after regulators in the world’s second-biggest economy clamped down on the use of shadow financing to buy stocks and expanded the supply of shares available for short sellers.

MSCI Asia-Pacific index rises 1.13 to close at 154.37 percent. Most Asian share markets took cues from a global surge in equities .Investors are weighing economic reports for clues on the timing of the Federal
Reserve’s first rate increase since 2006.