With the bourse struggling from the damaging publicity wrought by the FT exposure and consequent - not so good - tales of brokers and market loophole, nothing the listed companies do seems to be touching a sensitive nerve on the investor. Not the share splits, generous dividends, bonus, nor strong profit growth appear to be pushing any correct buttons.
The market seems to have completely succumbed to a myriad of issues unearthed by the FT saga, added onto the political environment, and just when we think the decline is over, another price goes lower.
Despite the prices having shed to mwananchi levels thanks to the recent spate of splits and drastic market correction, the question is whether mwananchi still has enough trust in the bourse to take up the opportunity of owning shares at such attractive lows.
Eveready practically traded below its offers price on Wednesday having hit a low of Kshs. 9.00, and I was sure we were looking at another “KQ like” post offer drop to Kshs. 6.00 after having been offered at Kshs. 11.00. At least it recovered to Kshs. 10 on Friday, but I don’t know whether we should be holding our breath on this one.
Kengen also seems to be dipping gradually and getting uncomfortable close to its offer price after hitting a low of Kshs. 17 on Friday while Kenya Airways last traded at the current Kshs. 80 levels in January last year.
Kenya Commercial slipped down to the current Kshs. 219-220 trading price despite having declared a Kshs. 6.00 dividend per shares and promising its share holders a 10:1 share split. Jubilee has nose-dived from February’s Kshs. 330 levels to Fridays Kshs. 210 low while Nation Media has left many an investor counting their losses.
Despite all this, I still maintain, its BUY time!
The market seems to have completely succumbed to a myriad of issues unearthed by the FT saga, added onto the political environment, and just when we think the decline is over, another price goes lower.
Despite the prices having shed to mwananchi levels thanks to the recent spate of splits and drastic market correction, the question is whether mwananchi still has enough trust in the bourse to take up the opportunity of owning shares at such attractive lows.
Eveready practically traded below its offers price on Wednesday having hit a low of Kshs. 9.00, and I was sure we were looking at another “KQ like” post offer drop to Kshs. 6.00 after having been offered at Kshs. 11.00. At least it recovered to Kshs. 10 on Friday, but I don’t know whether we should be holding our breath on this one.
Kengen also seems to be dipping gradually and getting uncomfortable close to its offer price after hitting a low of Kshs. 17 on Friday while Kenya Airways last traded at the current Kshs. 80 levels in January last year.
Kenya Commercial slipped down to the current Kshs. 219-220 trading price despite having declared a Kshs. 6.00 dividend per shares and promising its share holders a 10:1 share split. Jubilee has nose-dived from February’s Kshs. 330 levels to Fridays Kshs. 210 low while Nation Media has left many an investor counting their losses.
Despite all this, I still maintain, its BUY time!
3 comments:
Hisagal, fortune favors the brave!
But seriously, the so-called IPO bonanze promised for 2007 needs to kick in so that investors can remember that the NSE can make one a fortune.
I figure with the sub 5000 level, most are seriously considering ways to quit the market. Here at work, no one talks about the stocks anymore. But I agree, it continues to be a buyers market, and all who won't take part will regret later in the year (or sometime next year depending on elections).
Mainat, i dont think any company would dare have their IPO in this environment. there is too much fear of a possible under-subscription. I think the only IPO that could have a significant following would be Safaricom.
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