Here are the shares we will be closely watching in today’s trading at the Nairobi Securities Exchange:
See a summary of yesterday’s share trading here.
- Longhorn publishers – Recently released unaudited results show that Longhorn has made a 25.9 million shilling pre-tax loss for the year ended 30th four months after listing at the NSE on May 30th at a price of KES 14.00 per share. The publisher cites reduced government book purchasing for the loss which was in contrast to a 213 million shilling profit before tax for the year ended 30th June 2011. The share could dip below yesterday’s all-time closing low of KES 15 as investors dispose of their shares with reduced confidence on future earnings due to the year’s loss plus the directors’ recommendation that no dividends be paid to the shareholders for the just concluded financial year. Since the listing at the turn of June, the share traded above KES 19 before stabilizing just above KES 18 in July and then closer to KES 17 from late last month until last week’s profit warning sent the share further down closer to the 15 shilling low. Furthermore, demand for the share could also fall going forward on the company’s apparent exposure from reliance on government purchases which comprise 80% of the publisher’s sales thus compromising future recovery in the share’s price.
- CFC Stanbic Rights - The rights were the top losers at the stock market today, losing 17.36% to close at KES 5.00 per right from KES 6.00 previously. We will be watching them to see how they do in light of the on going rights issue that closes on the 8th of October. CFC Stanbic Holdings is carrying out the rights issue to raise 4 billion shillings to expand their subsidiary.
- Standard Group - yesterdays top gainer closed at KES 24 a 7.87% increase in price. We will watch to see if it moves any higher.
