Last week, the NSE 20 share index closed at 3,704.70 points while the all-share index closed at 67 points. This is the highest level that the all-share index has closed at this year as shown by the graph below:

[caption id="attachment_11573" align="aligncenter" width="544" caption="Source: Bloomberg"][/caption]

The NSE all share index is a market capitalization weighted index that constitutes all the securities on the NSE and has a base of 100 points.

These are some of the counters we will closely observe this week:

• Diamond Trust Bank – The bank last week confirmed that it will have a rights issue of 24.5 million shares in the coming weeks. With this announcement and the release of full details of the rights issue early next month, it will be interesting to observe how the counter will behave.
• Kenya Airways – The share further declined by 2.65% at the close of last week’s trading where 1.03 billion shares were added to the counter through the airline’s rights issue. It appears that that the rights issue may have diluted the share price as earlier suspected, in addition to the company’s negative profit announcement recently. It will be worth observing whether the counter recovers from this steady decline in performance and begins an upward trend.