At the close of trading yesterday the company’s share had fallen for the second day in a row recording a drop of 5.7% to close at KES 12.35. On Friday the share reported a loss of 0.8% to close at KES 13.10 per share.
This is in sharp contrast to the behaviour the share has exhibited over the last month or so recording increases in value on almost every trading day. Ever since April 23rd, when the company announced its profits for the period ended 31st December 2011, the share has jumped from KES 8 per share on 20th April to a 15 month high of KES 11.05 a week later and onwards to a two year high of KES 13.20 on Thursday the 17th of May. This translates to an overall increase of 54% from April 23rd to May 17th, that’s just 4 weeks. It therefore makes it NSE’s second best performer this year over taking the NSE All-share index which has risen 19% this year.
However on the 18th of May the share slipped by 0.8% to close at KES 13.09 per share compared to the 6% jump the share exhibited the day before. This fall continued in yesterday’s trading where the share fell by 5.7% to close at KES 12.35.
The fall in value can be observed below:
- Image sourced from www.bloomberg.com
According to Bloomberg.com, the upward trend of the share may have come to an end. The share recorded a 95.7 on the Relative Strength Index – this is a technical indicator used in the analysis of financial markets. It is intended to chart the current and historical strength or weakness of a stock or market based on the closing prices of a recent trading period. A reading of more than 70 serves as a signal to some technical analysts a security is overvalued and set for a reversal. This means that we shouldn’t expect the share to rise above the KES 13.20 threshold since for all intents and purposes the share seems to have reached its point of culmination, its zenith.