In response to the performance of the Pesa Portfolio of late, we have decided to make some changes and hopefully improve its performance.
Mumias Sugar Company: We have decided to slash out Mumias Sugar holdings by half. The 2,700 shares we have in the company have not been performing too well and we choose to offload some and invest in other counters. We will however hold on to 1,350 shares of the company, we feel they remain a good buy (despite our opinion that the counter is a long-term buy).
1,350 * 5.60 = KES 7,560
Actual proceeds (less transaction costs): 0.97*7,560 = KES 7,333.20
Housing Finance: We will hold onto our Housing Finance shares as they are. The share has been quite stable and we will hold on to it for now.
Kengen: We will add our shares in Kengen from the current 700 shares by 300 shares. We feel that the share is a good buy and will benefit the portfolio in months to come.
300* 8.00 = KES 2,400
Actual costs (including transaction costs): 1.03* 2,400 = KES 2,472
Crown Berger: We will maintain our stake in Crown Berger as it is. The share has performed well for us and we believe it will continue to strengthen the portfolio.
Uchumi Supermarket: Based on recent movements of the Uchumi share we have decided to lower our stake slightly. We have decided to reduce our Uchumi holdings by 500 shares (33%) to 1,000 shares. We feel this will reduce the volatility of the share movements, reducing the swings we have been having of late.
500*16.70 = KES 8,350
Actual proceeds (less transaction costs): 0.97* 8,350 = KES 8,099.50
We have decided to invest KES 13,480 to buy 800 Rea Vipingo shares. The share has increased steadily over the last month and with the positive first quarter results posted last week, we feel the buy will be a good one.
800* 16.85 = KES 13,480
Actual cost (including transaction costs) = 1.03* 13,480 = KES 13,884.40
Below is the new-look Pesa Portfolio effecting the changes:
| Share Price (KES) | Portfolio value (KES) | |||
| Share | Market Segment | Units | Latest | Current value |
| Mumias Sugar Company | Manufacturing and allied |
1,350 |
5.6 |
7,560.00 |
| Housing Finance Company Limited | Banking |
1,100 |
15.2 |
16,720.00 |
| Kengen Limited | Energy and petroleum |
700 |
8 |
5,600.00 |
| Crown Berger Limited | Construction and allied |
1,000 |
29.75 |
29,750.00 |
| Uchumi Supermarkets Limited | Commercial and Services |
1,000 |
16.85 |
16,850.00 |
| Rea Vipingo Plantations | Agriclutural |
800 |
16.85 |
13,480.00 |
| Net value of portfolio |
89,960.00 |
|||
| Cash at hand |
640.80 |
|||
| Cash receivable upon immediate sale (less transaction costs) |
87,902.00 |
{The Pesa Portfolio is just a simulation of the Nairobi Securities Exchange and is not a real portfolio. The opinions and views expressed here are purely for educational purposes and do not constitute investor advice}