Here is the latest value of the PesaPortfolio based on share prices at the end of trading yesterday, Thursday 30th August 2012. Read our summary of yesterday’s trading here.
Read here for more on what the PesaPortfolio is.
Since we last updated the PesaPortfolio at the end of trading on Friday 17th August, it has lost KES 1,022.50 to stand at a total value of KES 92,412.50 from KES 93,435.00 at the last update.
If we were to sell the entire portfolio, we would take home KES 90,564.25 compared to KES 91,566.30 on August 17th when we last updated the portfolio (transaction costs of 2 percent subtracted).
Losses to the portfolio were made through the following counters:
- Mumias Sugar –. Since our last update, the shares dropped 45 cents to lose our portfolio a total of 607.50 shillings by yesterday’s close at KES 6.35 per share. Mumias shares have been steadily eating away at the portfolio this month since they maxed out at a high of KES 7 three weeks ago. We will still hold on to them for three reasons. Firstly because they are trading above the KES 5.50 price we bought them at and secondly because just released half-year results show that Mumias post-tax profit has grown 4 percent to 2 billion shillings. Thirdly, company directors have recommended a dividend of KES 0.50 per share meaning that we stand to receive 675 shillings for our 1,350 shares later this year.
- Housing Finance – The shares initially dropped to KES 14.15 at the end of last week but have been on an overall upward trend this week up to KES 14.55 at yesterday’s close. This is however still 1 shilling and 25 cents below the share’s price at our last update which has lost the portfolio a total of KES 1,375. Housing Finance shares have been trading below the KES 15.60 price we bought them at and we will consider selling them in the coming week if losses persist.
- NIC Bank – Last week the shares dropped 1 shilling and 75 cents down to KES 31.75 where they stabilized briefly before climbing steadily over this week to yesterday’s close of KES 33 per share which is 50 cents shy of their price at our last update. This led to a 150 shilling loss to our portfolio. We will retain our NIC shares because of the bank’s ongoing Rights Issue which stands to benefit our portfolio with extra NIC shares at a discount price of KES 21. We have chosen to take up our full rights, meaning we will receive 1 new NIC share for every 4 that we currently own. Stand-by for a special PesaPortfolio edition on the NIC Rights Issue to be posted on Monday.
- Rea Vipingo – The shares fluctuated last week, going as low as KES 16.25 and as high as KES 17 before stabilizing between KES 16.45 and KES 16.50 this week. They closed yesterday at KES 16.45 which was 25 cents lower than at our last update. This reduced the value of our portfolio by 200 shillings. We will hold on to the shares for now.
The following shares added to the value of our portfolio:
- Crown Berger – The shares brought the highest gains to the portfolio buy edging up 1 shilling and 25 cents since our last update to add a total 1,250 shillings to the portfolio’s value. Of all the shares in the PesaPortfolio, Crown Berger have gained the most from the KES 26 share price we bought them to trade 10 shillings above this to their current KES 36.00.
- British–American Investments – After remaining between KES 5.65 and KES 5.70 last week, the shares surged to a high of KES 6.00 on Wednesday this week before becoming one of the biggest losers at the NSE yesterday to close at KES 5.85 after dropping 15 cents. This price was however still 20 cents higher than at our last update thus adding 300 shillings to the portfolio. We will hold on to the shares because they are trading marginally above our buying price of KES 5.65 per share and also stand to gain from a re-branding of British American due to happen soon.
{The PesaPortfolio is a simulation of the Nairobi Securities Exchange and is intended for investor education and entertainment only. It does not constitute investor advice and we do not trade on behalf of our readers}