Nation tops NSE monthly turnover ranking for August

The NMG counter moved shares worth Sh6.15 billion in August. FILE 

By CHARLES MWANIKI

In Summary

• The NMG counter moved shares worth Sh6.15 billion in August, helped by a block trade on August 14 that saw Sh5.99 billion worth of shares trade at Sh313 each.
• NMG on Friday announced a 17.5 per cent increase in pre-tax profit to Sh1.64 billion, and an interim dividend payout of Sh2.50 per share.

Nation Media Group (NMG) was the most traded stock in August as investors took positions ahead of the company’s half-year performance and dividend announcements, monthly data released by the bourse has shown.

The NMG counter moved shares worth Sh6.15 billion in the month, helped in part by a block trade on August 14 that saw Sh5.99 billion worth of shares trade at Sh313 each.

NMG on Friday announced a 17.5 per cent increase in pre-tax profit to Sh1.64 billion, and an interim dividend payout of Sh2.50 per share.

“Going forward, we expect Nation Media to continue delivering strong shareholder returns driven by organic growth from increased advertising spend in East Africa on account of improved economic performance,” said Kestrel Capital in an analysis note on the media firm.

(READ: NMG half-year profit up to Sh1.6bn)

The robust trading of NMG shares lifted the Nairobi Securities Exchange (NSE) turnover to its highest monthly total of the year, hitting Sh20.8 billion. In comparison, the total market turnover stood at Sh11.3 billion in July.

The 2013 highest volume was Sh16.2 billion in May. NMG saw its share gain by 1.3 per cent in August to close at Sh315, with the year-to-date gain standing at 42 per cent. It touched one-year high of Sh400 in May.

NMG is the publisher of the Business Daily, Daily Nation, the East African, Taifa Leo, The Monitor and the Citizen. The media group also owns NTV Kenya and NTV Uganda plus several FM radio stations across the region.

Safaricom was the second biggest mover of the month, buoyed by increased demand from both foreign and local investors, as well as good price performance which saw the share touch an all-time trading high of Sh8.25 per share in mid August.

The company saw significant local investor participation. The stock market recorded increased trading in August, with the average daily traded volumes hitting Sh990.5 million compared to Sh490.9 million in July.

“The market is still driven largely by institutional investors, both local and foreign, with retail participation beginning to return,” said Kestrel Capital CEO Andre DeSimone on Friday.

Foreign flows increased from Sh1.71 billion in July to Sh10.1 billion in August, mainly as a result of the NMG block trade and the increased activity on the two big counters of Safaricom and East African Breweries Limited (EABL).

The brewer moved shares worth Sh2.49 billion in August, with the share price on a downward trend as it closed the month 15.2 per cent down compared to July at Sh284.

The company announced a 37.9 per cent drop in profit after tax for the full year ended June to Sh6.9 billion.

The bank stocks also saw heightened demand in August with investors taking position as the lenders announced their half year results.