Here are the shares we will be closely watching in today’s trading at the Nairobi Securities Exchange:

• Kenya Airways – Last week saw the shares drop a total 14 percent over consecutive days to close Friday at a five year low of KES 11.50; dragging performance of the NSE 20 Share Index (Reuters). Since early January the shares’ price has dropped 41 percent to become one of the worst performing at the stock market this year. They dropped from trading between KES 16 and KES 20 per share in the first quarter down their biggest drop in March to a low of KES 13.15 which was lower than the then ongoing rights issue price of KES 14. Apart from the shares’ drop from mid-March to May amidst the 6 billion undersubscribed rights issue, the shares recovery took another hit in mid-March when KQ released 57 percent lower pre-tax earnings for the year ended March to 2.1 billion shillings from 5 billion in 2011 with a 6 fold drop in dividends to KES 0.25 per share from KES 1.50 last year. This saw the share drop from just above KES 16 down to another low of KES 12.60. Recent negative publicity for KQ this month involving staff layoffs and higher executive pay could be hurting the share this month and we will watch how the share trades from Friday’s low today.

• Tea Counters – Rising tea buying prices at the Mombasa auction are expected to lead to higher earnings for East African tea growers this year. The average price of auctioned tea has risen to $3.15 per kilo this year from $3.02 last year on higher tea quality (Business Daily). Based on this we will watch if how the tea counters react to this news. Kakuzi which grows tea and other horticultural crops closed last week as a top gainer at KES 73 which pointed to a recovery after it dropped to a one month low of KES 70 one week ago. Sasini closed Friday at KES 11.40 which is within the share’s average trading range for this year above KES 11 while Williamson Tea shares are trading at their lowest range for this year having closed Friday at KES 205 from a low of KES 200 just over one week ago. Kapchorua Tea closed the week stable at KES 117 where it has been since mid this month while Limuru is at KES 450 per share where it has traded since mid-June.