Today on the Nairobi Securities Exchange we shall be keeping our eyes on Kenya Airways, Uchumi and TPS Eastern Africa (Serena).
See a summary of last yesterday’s share trading here.
- TPS Eastern Africa (Serena) - Through a company announcement released on Friday the hotel company wants to acquire 79.19% of TPS (Uganda) Ltd from the Aga Khan Fund for Economic Development and the National Social Security Fund (Uganda) who own these shares. The proposed takeover deal is subject to CMA approval & an Extraordinary General Meeting of TPS Eastern Africa shareholders on a date to be announced. TPS E.A. shares closed Friday at KES 39.50. From August, the shares dropped to trade at the 40 shilling range compared to KES 45 for most of the year before then.
- Kenya Airways - The national carrier has been granted approval to launch its budget airline subsidiary, Jambo Jet. Jambo Jet will serve the regional routes to Wajir, Eldoret, Hargesia, Kisumu, Kigali, Mayotte, Addis Ababa, Mwanza and Antananarivo and offer low fares to compete with current competitors such as Fly540 which is revamping to Fastjet with lower fares. Africa's low cost airline industry is poised for growth due to overall economic growth spurring more business travel meaning KQ's approval for a budget airline could re-ignite investor interest in the share which has been trading at its lowest range below KES 12.00 of more than 5 years. it closed Friday at KES 11.80.
- Uchumi - The share closed Friday at its second highest price of the year at KES 19.35. From September, the share has rallied to gain 27% from a range slightly above KES 15 per share to almost touch the 20 shilling mark on speculation that the retail chain will this month announce full year profit, according to a Bloomberg news report. We will watch if it climbs to top its current high of KES 19.80 closed on Wednesday last week.
