E.A. Cables Accedes to Distributive Activities on Poor Performance

Wednesday’s trading was characterized by a sustained downtrend on the market indicators with the NSE-20 share index depreciating by 0.36% to close at 3981.33 points while the NASI rescinded by 0.31% to 146.61 points. The NSE 25 Share Index was on a similar trail, edging down by 0.03% to close at 4247.20 points. Market capitalization contracted further by 0.31% to KES 2.067Tn whilst equity turnover appreciated by 18.20% to KES 511.08Mn. The advance-decline ratio deteriorated further to 0.46x from 0.85x, with the number of decliners -24 outweighing the number of advancers-11.

Cables manufacturer, E.A. Cables Ltd (NSE: CABL) today posted their full year results for the period ended December 2015 registering a poor performance as illustrated by the financials. Revenues were down; 27% to KES 3.72 billion while the gross profits declined by 54% to KES 614 million. The firm realized a loss before tax of KES 1.09 billion and an after-tax loss of KES 741 million. The deprived numbers were attributable to a 20% decline in London metal exchange prices within the year, foreign exchange losses due to sharp depreciation of regional currencies and interruptions in their production processes in the Kitui factory.

The counter succumbed to a waning investor appetite on account of the financial performance, losing 6.80% to close at KES 6.85. We anticipate erosion.

Equity Market Highlights

Bamburi Cement Ltd (NSE: BAMB) was the most actively traded stock today accounting for 37.33% of the total market value traded activity. Safaricom Ltd (NSE: SCOM) also registered robust levels of activity, accounting for 21.43% of the total market turnover.

Eaagads Ltd (NSE: EGAD) capped the gainers chart, climbing up by 6.12% to close the day at KES 26.00. Standard Group Ltd (NSE: SGL) similarly surged by 6.03% to close the day in the second place at KES 30.75. The group announced their FY15 results yesterday. National Bank of Kenya Ltd (NSE: NBK) was the top loser for the day, shedding 9.34% to close at KES 13.10. Pan Africa Insurance Holdings Ltd (NSE: PAFR) sustained the downward momentum commenced last week, losing 8.75% to close at KES 36.50.

Article by Genghis Research.