Stanlib Launches the First REIT at NSE

The equities market closed in a healthier state than the previous trading days with all indices pointing north, an indication of the general improvement in investor sentiments across the board. The NSE-20 Share Index was in the green territory; edging up by 0.68% to close at 3935.88 points whilst theNSE-25 Share Index soared 0.62% to close at 4060.94points.

The Nairobi All Share Index (NASI) was on a similar trend, progressing by 0.34% to close at 139.43points. The market capitalization was up; 0.34% to close at KES 1,961.17 billion while equity turnover, registered a slide of 44.10% to close at KES 0.447 billion.

Kenya joined South Africa, Nigeria and Ghana as the only markets in the continent with a real estate investment trust vehicle. Stanlib has launched Kenya’s first I-Reit IPO with a target to raise KES 12.5Bn for investing in rental properties.

Investors will need a minimum of KES 20,000 to buy a minimum of 1,000 units in order to participate in the initial public offer. The I-Reit is expected to be listed on the main investment market segmentation November 24th 2015. The new product is expected to offer diversification on investors’ portfolios as they get a bite of the cake in the real estate industry.

Equity Market Highlights

Kenya Commercial Bank Ltd (NSE: KCB) was the most actively traded stock today accounting for 30.29% of the total market activity driven by increased foreign outflows. Equity Group Holdings Ltd (NSE:EQTY) closed in second position, accounting for 21.14% of the days traded value.

CIC Insurance Group Ltd (NSE: CIC) capped the gainers chart garnering4.07% to close the day at KES 6.40. This was on account of accumulation activities. Barclays Bank of Kenya Ltd (NSE: BBK) extended by 3.70%, to close at KES 12.60. Car & General (K) Ltd (NSE: C &G)was the major laggard declining by 9.71% to KES 39.50 on account of a small volume of 300 shares only. Mumias Sugar Ltd (NSE: MSC)charted a similar trend, slumping by 8.82% to close at KES 1.55.