In light of the anticipated global increase in tea price, our focus on the Nairobi Securities Exchange shall be on the Williamson Tea counter. We shall also be looking at Scangroup Ltd and Standard Chartered Bank, because of the rights issue that commenced yesterday and the expansion plan.
See a summary of last yesterday’s share trading here.
- Standard Chartered Bank – The bank commenced its rights issue yesterday with each share going for KES 145. This represents a 47.5% discount from the close on Monday of KES 214. The Rights Issue will be on the basis of One (1) New Share for every Thirteen (13) Existing Shares. Only those who held shares on closure on 19 September 2012 will be eligible to take part in this rights issue.
- Williamson Tea Ltd – The counter was the top performer yesterday having gained 10% to close at KES 220. This increase came barely 1 day after tea price was predicted to rise because the outlook for tea globally is worrying. The Kenyan market scene reacted positively to the news and saw the counter trade at a minimum of KES 215 compared to the KES 200 it closed at the previous day.
- Scangroup – The share yesterday advanced 2.61 percent to close at its second highest closing price this year of KES 59.00 per share where it also closed mid last month. This close is less than 1 shilling short of the share’s 52-week closing high marginally above KES 59.50 closed in mid-August. Last month, the shares were pushed to their lowest since early August to date of KES 56.00 after they were one of the highest sold by foreign investors. As the second half of Scangroup’s financial year draws to a close in December, investor interest in the share could be rekindling on prospects of higher year-end earnings from a grown advertising market-share and higher half-year earnings. We will watch if the shares top yesterday’s close today.