Pan Africa Insurance Issues Profit Warning Alert

The bourse closed on an impressive note as depicted by all the indicators and the value of transactions. The NSE 20 share index escalated by 0.61% from yesterday’s close of 3980.57 to settle at 4004.91 points surpassing the 4000 psychological mark. The NSE-25 Share Index followed suit, advancing marginally by 0.43% to close at 4127.31 points while the NASI appreciated by 0.43% to 143.97 points. Investors’ wealth recorded an upsurge, increasing by 0.72% to close at KES 2,025.18Bn. Equity turnover revved up significantly to perch at KES 0.309Bn. Market breadth, depicted that the market had improved, with the advancers-22 outweighing the number of decliners-14.

Pan Africa Insurance Ltd (NSE: PAFR) issued a profit warning alert, becoming the 16th firm that have publicly forecasted lower profits. The insurance company anticipates its earnings for the period ended 31st December 2015, to be at least 25% below the profit reported in a similar period last year. The company attributed the profit warning alert to the adverse equity market conditions experienced during the year. In addition, the Company highlighted that they also expected General Insurance business to experience an underwriting loss. Pan Africa joins a list of other insurance companies; UAP and British American Investment Company (NSE: BRITAM) in the insurance sector, that have issued profit warnings.

Equity Market Highlights

Equity Group Holdings Ltd (NSE: EQTY) was the day’s highest traded stock, recording a turnover of KES 203.53Mn to contribute 65.80% of total market activity. Safaricom Ltd (NSE: SCOM) followed with a turnover of KES 47.59Mn representing 15.94% of total market turnover.

Atlas Development Ltd (NSE: ADSS) topped the gainers chart, appreciating by 8.57% to close at KES 1.90. British American Tobacco Kenya Ltd (NSE: BAT) recorded a 8.28% gain to close the day at KES 785.00. Williamson Tea Kenya Ltd (NSE: WTK) emerged as the top loser of the day, plunging by 10.00% to close at KES 360.00. Kenol Kobil Ltd (NSE: KENO) straggled behind, depreciating by 8.42% to close at KES 8.70.