KenGen Gets Go Ahead on Planned Cash Call

By / Published July 10, 2015 | 7:30 am

KenGen Gets Go Ahead on Planned Cash Call

The bourse remained jittery for the third straight day as more investors put pressure on the supply side as they exited their positions in the Kenyan equity markets. The NSE-20 share lost a further 0.17% to clinch at 4754.66 while the NASI shaved off 0.41% to close at 159.59 points at the end of the todays’ trading session. Equity turnover recorded a significant jump of 67.71% to close at KES 2.147Bn, fuelled by the heavy volumes traded especially on Safaricom Ltd (NSE: SCOM) and banking stocks. On the contrary, investors wealth contracted by 0.41% to close at KES 2.234Tn.

As the Kenyan economy continues to face turmoil from the weakening currency, the equities market indicators plunged as depicted by the indices, corporates still remain sanguine of raising a fortune from investors to steer growth. The leading electricity generating company, KenGen Co. Ltd (NSE: KEGN) today announced that they would proceed with the earlier plans of conducting a cash call later in the year, post receiving government’s approval that they were ready to take up their rights.

The power generating company reiterated that they would be raising funds to finance their on-going generation projects, as they continue to seek other sources of financing such as concessional loans. The market however received the news with a cautious attitude as illustrated by the increased supply leading to a 3.74% slide on the share price to close at KES 9.00.

Equity Market Highlights

Safaricom Ltd (NSE: SCOM) was the most traded stock accounting for 35.87% of the total value traded. East African Breweries Ltd (NSE: EABL) trailed behind accounting for 29.54% of the days traded value, by passing Equity Group Holdings Ltd (NSE: EQTY) which came in second yesterday.

Kapchorua Tea Co. Ltd (NSE: KAPC) capped the top gainers list, soaring by 9.38% to KES 175.00. Nation Media Group Ltd (NSE: NMG) recorded a 5.85% gain to KES 199.00, perching the day’s second best gainer position.

Eaagads Ltd. (NSE: EGAD) was the top slacker of the day, shedding 6.00% to KES 35.25 as investors sold off their shares to cash in any gains registered on the stock. KenGen Co. Ltd. (NSE: KEGN) came in second as it shrank by 3.74% to KES 9.00 on account of heightened distributive activities.

Foreign Investor Participation

Foreign investor participation was robust during Thursday’s trading session accounting for 89.22% of total turnover against 10.78% local participation. Investors’ reverted positions and were seen dominant on the buying side; resulting in net inflows worth KES 6.42Mn compared to net outflows worth KES25.93on Wednesday.

Foreign investors accounted for 89.22% of the NSE turnover as compared to 85.11% on Wednesday.

Investors engaged in accumulative activities, resulting in net inflows worth KES 6.42Mn relative to net outflows worth KES 25.93Mn on Wednesday.

East African Breweries Limited (NSE: EABL) was the day’s highest traded stock, recording a turnover of KES 619.21Mn to account for 28.84% of total market activity and 32.33% of foreign activity whilst Equity Holdings Limited (NSE: EQTY) followed with a turnover of KES 343.50Mn representing 16.00% of total market activity and 17.93% of foreign activity.

East African Breweries Limited (NSE: EABL) posted the day’s highest inflows of KES 10.99Mn whilst Kenya Commercial Bank Limited (NSE: KCB) posted the day’s highest outflows worth KES 27.67Mn.

Shilling Continues to Slide Further Against USD

The Kenyan Shilling weakened against all its major regional and international peers. The shilling continued to exert further weakening by 0.40% to 100.68 as the Dollar remains relatively higher on its rallying despite higher jobless claims data. Further weakening was registered by the shilling against the Sterling Pound (GBP) by 0.56% to 154.99 as the Bank of England held the key benchmark rate unchanged at 0.5%. On the regional front, the shilling ceded 3.41% against the Ugandan Shilling (UGX) to 34.39, while shedding a further 0.67% against the Tanzanian Shilling (TZS).