NSE chairman Eddy Njoroge (from left), Vision 2030 Secretariat
director-general Mugo Kibati and Home Afrika chairman Lee Karuri during
the bell ringing ceremony, marking the company’s debut at the NSE on
Monday. Photo/Salaton Njau
By Charles Mwaniki
In Summary
- The share closed Thursday at Sh22.75 a piece, gaining 25 cents from the opening price of Sh22.50.
The newly listed Home Afrika share recovered on
Thursday following Wednesday’s slide that saw it lose 10 per cent of its
market value, the maximum fall allowable in a single day under Nairobi
Securities Exchange (NSE) trading rules.
The share closed Thursday at Sh22.75 a piece, gaining 25 cents from the opening price of Sh22.50.
It had lost the maximum possible Sh2.50 on Wednesday, in what analysts termed as the expected fluctuation of a newly listed stock that is still finding its range. The stock is, however, tipped to drop further to factor in the current premium on its market price.
“The interest on the stock is still up since it is in its first few days of trading. The fall in price on Wednesday was because it is still settling in the market,” said Kestrel Capital markets analyst Kuria Kamau.
The real estate development firm was listed on Monday at an opening price of Sh12, but it shot up by 108 per cent to close the day at Sh25 a share. It experienced a quiet day of trading on Tuesday, moving only 500 shares at an unchanged price, before the increased activity on Wednesday when 29,400 shares were traded led to the price fall.
Mr Kamau gave an example of the movement of the TransCentury share upon its listing in 2011, where the share went up sharply to touch Sh60 on listing in mid July 2011 before halving in price as it settled in the bourse, noting that both counters are relatively small in terms of market capitalisation compared to other companies in the bourse.
ABC Capital general manager Samwel Kiraka said it is still too early to read any definitive trend in Home Africa’s share price movement.
One of the recent entrants to the bourse, TransCentury, is currently trading at Sh34.50, still below its listing price of Sh50, although it has gained 56 per cent in the year-to-date.
The Home Afrika share is the first to be listed on the Growth and Enterprise Market Segment (GEMS), the newly created board for small firms at the NSE.
The real estate firm which was founded in 2008 came into the market with 128 shareholders and listed 405 million shares on the bourse.
Home Afrika is currently handling a Sh10 billion property portfolio, which includes the Migaa live-in-golf community in Kiambu County, Lakeview Heights in Kisumu County, Llangwe in Kwale County and Kikwetu in Machakos County.
Home Afrika has said that it plans to expand its presence into five countries and grow its property portfolio to Sh87 billion in the next five years.
The firm also recently signed an agreement with pan-African mortgage lender Shelter Afrique
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