Bears in Santa Claus Caps at the Bourse

Wednesday’s trading was mainly driven by the local investors, as foreign participation continued to ebb ahead of the festive season. The Nairobi All Share Index slide by a further 1.33% to close at 142.85 points while the NSE-25 index lost 0.73% to close at 4112.59 points. The NSE -20 Share Index followed a similar trend, plunging by 0.91% to 3,918.75 points. Equity turnover remained on the green, recording a 19.99% surge to close at KES 1.067Bn. Market Capitalization contracted by 1.33% to close at KES 2.01Tn. The A/D ratio weakened to 0.75x from 0.89x as the number of stocks that declined, 20, outweighed the number of stocks that advanced, 15.

ARM Cement Ltd (NSE: ARM) is currently in discussion with an international institutional investor who intends to make an investment of up to USD 125Mn equity investment in the company, through convertible preference shares. The cement manufacturer intends to inject more capital into the firm to downsize their short term loans. If the proposed investment goes through, it will see the company improve its overall cash position, which has remained strained due to the huge capital expenditure invested in expansion projects. No dilution effect is however anticipated on the ordinary shareholding.

Equity Market Highlights

Equity Group Holdings Ltd (NSE: EQTY) remained the most actively traded stock accounting for 70.43% of the total market value traded activity. East African Breweries Ltd (NSE: EABL) closed in second position, accounting for 17.10% of the days traded value.

Trans-Century Ltd (NSE: TCL) was the top gainer of the day, edging up by 9.22% to close the day at KES 7.70. Eveready East Africa Ltd (NSE: EVRD) posted a 7.69% gain to close the day at KES 2.80.

Atlas Development & Support Services Ltd (NSE: ADSS) sustained its losing streak, shedding off 8.57% to close at KES 1.60. BOC Kenya Ltd (NSE: BOC) lagged behind, slumping by 8.26% to close at KES 100.00 buoyed by only 600 shares traded today.