BAT Kenya top gainer at Nairobi bourse trade

BAT has the most generous dividend at the Nairobi Securities Exchange. Photo/FILE 

By CHARLES MWANIKI, cmwaniki@ke.nationmedia.com

In Summary

• The trading on the stock mainly came from local institutional investors, with the company seeing 391,500 shares traded Thursday at a wide price range of between Sh605 and Sh680.
• The share has now gained 15 per cent over the past five trading sessions spanning one week, rising by Sh88.
• The counter has the most generous dividend at the stock exchange, paying out its entire net earnings as dividend to shareholders.

BAT Kenya moved shares worth Sh266 million during trading at the Nairobi Securities Exchange Thursday, with the active demand helping the share lead the market in gains at five per cent to touch a new one-year high of Sh679.

 

The trading on the stock mainly came from local institutional investors, with the company seeing 391,500 shares traded Thursday at a wide price range of between Sh605 and Sh680.

“The buyers may likely be taking long positions on the stock with an eye on the high dividend yields,” said Kestrel Capital analyst Kuria Kamau.

The share has now gained 15 per cent over the past five trading sessions spanning one week, rising by Sh88.

The counter has the most generous dividend at the stock exchange, paying out its entire net earnings as dividend to shareholders.

READ: BAT Kenya commits to 100 per cent dividend payouts

In the last financial year, shareholders received a dividend of Sh33.50 per share. The company had been bracing itself for another hit through higher taxes in the 2014-15 Budget, but the governments tax-silent budget spared it immediate ‘’sin tax’’ increases.

Analysts have previously said that institutional investors would likely increase their exposure in equities once the country concluded its Eurobond Issue, with an eye on a fall in interest rate yield on government securities as the State borrows less from the domestic market.

Other top gainers Thursday included ScanGroup and Housing Finance, which closed 4.4 per cent up each at Sh47 and Sh41.25 respectively, with Unga Group up four per cent at Sh32.50.

Kenya Airways, which announced reduced net losses of Sh3.4 billion this week, shed 2.8 per cent to close at Sh10.55 as more local investors exited the counter.

Kakuzi was, however, the day’s leading decliner at 8.1 per cent to close at Sh136, with Standard Group down five per cent to Sh33 and I&M Holdings losing 2.8 per cent to close at Sh139.