The Nairobi Securities Exchange closed a few points higher on both indices yesterday; 4141.23 points for the 20-share index and 91.43 points for the All-share index.

Given their performance yesterday, KCB and BAT shall remain under our watch. The new entrant will be Housing Finance.

COUNTER WATCH

• KCB – A stocks were the highest traded yesterday at 1.96 million shares. The average price for the day was KES 30.25. Ranked as the best performing stock in the bourse, the share is proving this true as it graces the top gainers and top traders every week. Increased profits from their financial results may have affected shareholder reaction, making them react in a speculative manner. Today, we shall keep an eye on its price movement.
• British American Tobacco – The share took a sudden leap to KES 465 from KES 459, a price at which it had settled for many days. Over 300,000 shares were traded making a cash flow of over KES 140 Million. The company is currently the strongest oppose to a suggestion by World Health Organization to charge a minimum excise duty of 70%. Shareholders are however, confident in the stock’s value and have shot up its demand and price. We shall be looking to see if local investors keep the demand running high.
• Housing Finance – The share closed at KES 16.25, an improvement from KES 15.75 on the previous close. This increase comes amidst news of a profit drop by 2.7% in the third quarter for 2012. These results are on the up side considering the difficult period customers have experienced this year. Inflation played a key factor and increased the cost of credit. We shall be monitoring the stock’s trading volume by end of business today.