The 20-share index performed better yesterday as it closed at 4121.13 points. The All-share also improved performance and closed at 91.84 points. We shall focus on Kenya Airways and Safaricom Limited. Safaricom is to make an announcement on their results thus far and it could lead to significant changes in the stocks’ valuation. Kenya Airways on the other hand, has already made its release which has resulted in a dump of shares.
- Kenya Airways – The share’s price decreased further yesterday having closed at KES 11.40, down from KES 12 the previous day. The counter continues to face negative actions from shareholders because of the half year results it announced two days ago. Most notable in the release was a Profit-After-Tax loss of KES 4.8 Billion in its first half of the financial year. The airline has, within the 6 months, fired many employees in a cost-cutting exercise and purchased new planes. The loss of billions within half a year spells loss of dividends for shareholders and they are acting fast to dispose of the stocks. The second half of its financial year will see elections which may have unimaginable negative results for the airline. We shall keep an eye on the stock’s price for the day.
- Safaricom Limited – There has been speculation in the course of the week regarding the company’s performance. Many are of the opinion that they will today announce increased profits in light of increased call costs and scrapping of the unlimited data bundles which they deemed as unprofitable. The share closed at KES 4.45, amongst the highest prices it has seen this year and traded a volume of a record 39 Million shares. We shall keep an eye on both the price and volume in light of today’s briefing.