Below is the value of the PesaPortfolio at the close of trading yesterday:
By the close of trading yesterday, our PesaPortfolio had gained KES 552.50 to stand at KES 94,980.00 up from KES 94,457.50 at the close of trading yesterday
Total cash receivable if we were to sell the entire portfolio would be Ksh 92,767.70 after deducting transaction costs.
In comparison, cash receivable at end of trading on Friday was KES 92,257.37 representing a cash gain of KES 510.33
Gains in our portfolio were attributable to the following counters:
- Mumias Sugar – The share was a top gainer yesterday, climbing 2.26 percent to close at KES 6.80 from KES 6.65 last week. This rise in the share added another KES 202.50 to our portfolio similar to Friday.
- Housing Finance – The share gained 0.97 percent to close at KES 15.55 from KES 15.40 last week. This added KES 165.00 to our portfolio.
Losses to the portfolio stemmed from the following counters:
- Kengen – The share lost 0.60 percent to close at KES 8.25 from KES 8.30 last week. Total portfolio losses from this counter were KES 35.00
- Uchumi – The share lost 40 cents yesterday to close at KES 15.15 from KES 15.55 last week. This shed a total of KES 400 from our portfolio.
- Rea Vipingo – The shares lost 5 cents in yesterday’s trading to close at KES 17.05 from KES 17.10 last week. Total losses from this counter were KES 40.00
Crown Berger shares with no change from last week.
Changes to the PesaPortfolio
In light of the PesaPortfolio’s waning performance over the past weeks, we have decided to make some changes that we hope will begin to boost the portfolio towards a value of 100,000 shillings and beyond. The following are the changes we have made:
Sale Transactions
Kengen – Based on the downward trend of these shares in the past month, we have decided to offload our entire stake in Kengen despite prospects that the share is a good buy in the long run. The transaction is summarized below:
700 *8.25 = KES 5,775.00
Actual Proceeds: 5,775* 0.97 (to remove transaction costs) = KES 5,601.75
Uchumi Supermarkets – Following the share’s sustained decline over the past two months, we have decided to offload our entire stock in Uchumi as the share appears to have peaked at the price we bought it at (KES 18) with no further price increase. The transaction is shown below:
1000*15.15 = KES 15,150
Actual Proceeds: 15,150*0.97 (to remove transaction costs) = KES 14,695.50
Total Proceeds from Sale Transactions: 5,601.75 + 14,695.50 = KES 20,297.25
Purchase Transactions
NIC Bank – We have decided to buy 300 shares in the bank which is scheduled to conduct a rights issue next month. We believe that the impending rights issue could generate speculative interest in the share with anticipated gains in its price. The share has gained a total of 51 percent this year and the bank has shown stellar financial performance with pre-tax profit increasing an average of 36 percent over the past five years. The transaction is summarized below:
300*36.75 = KES 11,025
Actual Cost: 11,025*1.03 (adding transaction costs) = KES 11,355.75
British – American Investments – We have also decided to buy 1,500 British-American shares at KES 5.65 per share. We are of the opinion these shares are currently undervalued and have massive growth potential. The company is a leading asset management and insurance company in Kenya and could be a major beneficiary of the loosening monetary policy conditions in the Kenyan economy. The transaction is summarized below:
1,500*5.65 = KES 8,475
Actual Cost: 8,475*1.03 (adding transaction costs) = KES 8,729.25
Total Purchase Costs: 11,355.75 + 8,729.26 = KES 20,085.00
Below is the new PesaPortfolio incorporating these changes:
- The PesaPortfolio with new changes incorporated
Notes to other counters:
- Rea Vipingo Plantations – We will hold on to our Rea Vipingo shares which have improved significantly since mid this month reaching their highest price of this year last week.
- Mumias Sugar – We will keep our Mumias shares as they are for now. This counter has made our portfolio some impressive gains and sustained trading above the price we bought it for at KES 5.50. Better still, the share is showing signs that it could rally some more in the coming days.
- Housing Finance – We will continue holding our share
- s in the mortgage lender as they are. The shares have proven to be a good buy, giving our portfolio some good gains over the past weeks. The counter appears to be on the rise again, so we will hold on to it in anticipation of continued gains.
- Crown Berger – These shares have proven to be a solid buy, adding a total of 29 percent since we bought them in May this year. In light of this good performance, we will hold on to the shares for now.