Semi-Annual Market Report: Best Performing Stocks
Diversification is the art when it comes to investing in securities. Diversification helps shield an investor from risks. The idea is to have stocks that are gaining in your basket to cover the losing stocks because we all have that one stock that is shedding value. But sometimes a perfect scenario can play out; all your stocks can gain. We bring you the top 10 gainers this year.
Kakuzi
This is a listed Agricultural firm which has recorded the largest share price gain in the past seven months. Kakuzi share price has risen from KES 180 in January 2015 to trade at KES 297 reflecting a 65% increase which was the highest in the Nairobi Security Exchange.
Because of the diversified nature of Kakuzi ltd, i.e. the focus on mixed agricultural portfolio, the company is able to mitigate the profit cycle risk. There has been increased demand for the stock against limited supply. This is due to the expected increase in international tea prices by the investors
Continuing focus on a mixed agricultural portfolio to mitigate the profit cycle risk to which agriculture has historically been subject to.
Developing macadamia nut production which will add scale and customer service to parent company’s existing operations in Malawi and South Africa, is a key strategic thrust according to the company and we couldn’t agree more.
Crown Paints
This was the second top gainer this year having registered on the counter a gain of 48% at the end of the semi-year to rest at KES 164.
The company has a wide product range which constitutes a variety of paint products. The company has been able to provide competitive edge to its products by ensuring product differentiation.
The High operating expenses incurred on its regional expansion drive pulled down the paints manufacturer’s earnings, but the announcement of a bonus issue last Month set investors searching for the stock.
The company also has a large product range which constitutes a variety of paint products. The company has been able to provide competitive edge to its products by ensuring product differentiation.
The credit for the success of the company in consistently retaining its NUMBER ONE position having a 65% market share in the Kenyan decorative market over the past 50 years goes to the totally dedicated and committed 1,500 CROWN DEALERS & CUSTOMERS.
The company has been blessed with a divine team of directors, senior management and the most important employees who have been working hard to help the company sustain its position as the most leading player.
The last financial year saw the company issue share splits instead of dividends to its shareholders and this has contributed to the company position in the market as more shares were retained.
Sasini Tea and Coffee
Sasini was among the top gaining stock in the semi annual results released registering on the counter gain of 24% to rest at KES 15.95. Though the semi -annual results saw a decrease in profit in operating activities to a loss after tax of Ksh. 51.9 Million Compared to profit of 39.7Million in the same period in the previous year.
The stock gain has been contributed by the expected increase in international tea price and the subsequent increase in demand for the stock.
Limuru Tea Co.
It’s a company involved in tea farming and production. The semi -annual results show the stock price has gained by 23% in the last six months to rest at KES 950.
The increase in share price was contributed by the increasing demand for Tea. On 12th may saw the company issue share split in the ratio of 1 for 2. The share split will not only increase the number of shares issued but also the cost.
Jubilee Insurance Co.
This is the largest insurance company in East Africa offering diversified insurance commodities. The company reported an increase in share price of 23% to emerge among top gaining companies. The company has grown in every aspect from pre -tax profits to gross premiums earned.
The Company’s strategy of diversifying its investment and asset base provided an impressive investment income growth and this increase demand for its shares. Also the Jubilee’s business and product development strategy which designed around innovation and technology has seen the stock g