Liberty Posts a 35.9% Decline in Profitability, Stock Closes 2.19% Higher

Liberty Kenya Holdings Ltd (NSE: CFCI) announced their annual results for the period ended 31st December 2015, with a remarkable improvement of 17.8% in net earned premiums to KES 5.53Bn. This was on the back drop of a 16.4% rise in the gross earned premiums. On the contrary, total income edged down by 0.4% to KES 8.27Bn on account of a 38.2% decline in investment income, attributable to the depreciation in the value of investments in both listed equities and bonds across the East African market. Overall, the PBT was down; 29.2% to KES 953.70Mn while PAT dipped by 35.9% to KES 736.05Mn.

This is the second listed insurer to announce a decline in profitability. The company’s board of directors did not recommend a dividend payout for investors.

The market reopened after the Easter break on a lethargic note with all benchmark indicators nose-diving into the red territory. The NSE-20 share index lost 0.14% to close slightly below the 4000 mark (crossed during the last trading session) at 3995.56 points while the NASI retreated by 0.33% to 147.07 points. Further on, the NSE 25 Share Index depreciated by 0.41% to close at 4248.61 points. Market capitalization contracted by 0.34% to KES 2.073Tn whilst equity turnover advanced 4.61% to KES 432.38Mn. The A/D ratio slightly weakened from 1.00x to 0.85x, with the number of advancers -17 failing to outweigh the number of decliners-20.

Equity Market Highlights

KenolKobil Ltd (NSE: KENO) was the most actively traded stock today accounting for 21.37% of the total market value traded activity. Safaricom Ltd (NSE: SCOM) also registered stout levels of activity, accounting for 21.20% of the total market turnover.

Nairobi Securities Exchange Ltd (NSE: NSE) was the top gainer of the day, advancing by 10.00% to close the day at KES 27.50. KenolKobil Ltd (NSE: KENO) similarly appreciated by 6.51% to close the day as the second best gainer at KES 11.45.

Marshalls E.A. Ltd (NSE: MASH) led the losers pack, shedding 10.00% to close at KES 11.25. CIC Insurance Group (NSE: CIC) followed a close second as it cut back by 4.20% to KES 5.70 on account of relatively average results which didn’t spur investors’ confidence.

Article by Genghis Research.