Portland Cement stock the biggest gainer at Sh91

Money Markets

A trader at the NSE. Portland Cement was up 8.3 per cent on Thursday to Sh91. Photo/FILE 

By CHARLES MWANIKI

In Summary

• East Africa Portland Cement was up 8.3 per cent on Thursday to Sh91, marking a turnaround for the stock that had lost 16 per cent of its value over the past two weeks.

East Africa Portland Cement was the biggest gainer at the Nairobi Securities Exchange amid renewed speculation that it could be sold.

The cement firm was up 8.3 per cent on Thursday to Sh91, marking a turnaround for the stock that had lost 16 per cent of its value over the past two weeks.

“Speculation resurfaced that the mainly government and Lafarge-owned company could be sold to Dangote, which is looking for an entry into the Kenyan cement market,” said Standard Investment bank in a market note.

Jubilee Insurance gained 6.6 per cent to hit a new one year high of Sh325, but on thin volumes.

The insurer, which registered a 10 per cent rise in after-tax profit for 2013 to Sh2.5 billion, has recently said it is in acquisition talks with up to four companies which it aims to buy out by the end of this year as part of its regional expansion strategy.

Oil marketer Total also saw its share benefit from positive sentiments towards its full year 2013 results which showed a return to profitability, with net earnings of Sh1.3 billion, reversing a Sh202 million loss recorded a year earlier.

The firm also announced an increased dividend of 60 cents per share up from the 20 cents offered in 2012.

READ: Total Kenya swings to profit, triples dividend payout

Analysts expect attention to remain on the medium and small counters which are seen as likely to offer more in capital appreciation.

“As the market eases down due to the conclusion of the earnings reporting season and subsequent book closures for dividends, we anticipate a shift in investor focus to mid and small cap stocks trading at relatively lower price to earnings ratios, thus providing higher upside potential,” said analysts at Genghis Capital.

The NSE All Share index gained 0.14 points to close at 143, with the NSE 20 Share index losing further ground to close 15.5 points down at 4918.

Market capitalisation was above Sh2 trillion mainly driven by a gain in the price of Safaricom to Sh12.50 from Wednesday’s Sh12.40, with the telco accounting for 44 per cent of the day’s traded volume of Sh445.4 million.

The day’s leading loser was Standard Group which shed 5.2 per cent to close at Sh27.50, with Transcentury down 4.4 per cent to Sh27.50 as it ceded the gains made on Wednesday following sale of its stake in RVR to Citadel Capital.