Car & General Posts 54% Decline in PAT

Equities

The market closed on a lacklustre note during Tuesday’s trading as most indicators closed in the red. The Nairobi All Share Index dipped by 0.58% to close at 144.77 points while the NSE-25 index declined 1.04% to close at 4142.66 points. The NSE -20 Share Index was equally on a downtrend, losing ground by 1.35% to perch at 3,954.54 points. Equity turnover remained on the green, recording a 35.60% increase to close at KES 0.889Bn. Market Capitalization rescinded by 0.57% to close at KES 2.037Tn. Market breadth, an unbiased measure of the market performance, indicated that the market conditions had slightly improved, despite the number of stocks that declined, 18, outweighing the number of stocks that advanced, 16.

Car & General (Kenya) Ltd (NSE: C& G) announced their FY15 results for the period ended 30th September 2015 with a surge of 20% on their top line to KES 9.93Bn, driven by growth in market share across all their business lines. The improved revenues did not however, cushion the firm from facing compressed PBT and PAT margins i.e. 0.8% (FY14-5.1%) and 1.3% (FY14-3.4%) respectively. This was attributable to the substantial forex losses (realized and unrealized) of KES 290Mn, in addition to the competitive & consumer pressures, which restrained them from increasing prices to keep pace with the currency devaluations. The company reported a 54.3% decline in net earnings to close at KES 127Mn for the period ended.

Equity Market Highlights

Equity Group Holdings Ltd (NSE: EQTY) was the most actively traded stock today accounting for 61.47 % of the total market value traded activity. Safaricom Ltd (NSE: SCOM) closed in second place, accounting for 16.98% of the days traded value.

Eaagads Ltd (NSE: EGAD) was the top gainer of the day, ascending by 8.89% to close the day at KES 24.50. Kapchorua Tea Co. Ltd (NSE: KAPC) registered an 8.43% gain to close the day at KES 193.00, thus bolting the agricultural sector as the best performing sector so far, this year.

Atlas Development & Support Services Ltd (NSE: ADSS) shed off its recent gains capping the losers list. The stock lost 7.89% to close at KES 1.75. Sasini Ltd (NSE: SASN) trailed behind, plunging by 6.67% to close at KES 21.00.