Money Markets
A Nairobi Securities Exchange staff monitors online trading. FILE PHOTO | SALATON NJAU |
NATION MEDIA GROUP
By CHARLES MWANIKI, cmwaniki@ke.nationmedia.com
Eveready
climbed to a four-and-a-half year high of Sh4.90 a share Tuesday as
investors took positively the news of the company shutting down its
battery making operations in Kenya to concentrate on real estate.
The counter touched Sh5 in trading Tuesday in the first
session of trading since the closure announcement. This was the first
time it has done so since March 2010, and was up 78 per cent on Monday’s
closing price of Sh2.75.
Eveready saw increased trading Tuesday with 1.29
million shares traded, without the usual 10 per cent gain or loss limit
on the counter following the significant corporate announcement made
during trading hours on Monday.
In shutting down its Nakuru plant, Eveready cited
decline in the dry cell battery market due to cheap imports and high
energy costs which have reduced its capacity to 25 per cent.
In the battery line, the company will now transform
into a distributor of readymade imports sourced from its affiliate
Energizer in Egypt.
“The decision was informed by the 20 acres prime
location on which the factory sits as this will be the site for the
company’s flagship investment. Kenyan developers have in the past
witnessed double digit returns driven by increased demand for
residential and commercial properties,” said Standard Investment Bank in
a note following Eveready’s announcement.
Longhorn, Jubilee Holdings, Kenya Orchards and Unga were the other main gainers Tuesday, when smaller counters dominated the market.
Jubilee closed 9.5 per cent up to an all-time high of Sh486 though on low volumes, continuing its recent gains.
Kenya Orchards, following an announcement that it
will be moving into manufacturing of spices as it expands its food
processing portfolio closed 8.9 per cent higher at a new all-time high
of Sh73.
Longhorn was up 8.5 per cent in also touching a new all-time high of Sh25.75.
The publisher is still benefitting from investor
demand arising out of the announcement of an improved dividend (up 150
per cent to Sh1.20) and announcements of positive growth prospects for
the regional business.
Unga Group also closed at an all-time high price, gaining 8.6 per cent to Sh40.75.
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