Money Markets
Shoppers at an Uchumi outlet in Nairobi. The retail chain is issuing an
extra 99.5 million shares to its existing shareholders at Sh9 to raise
Sh895 million for expansion. FILE PHOTO |
NATION MEDIA GROUP
By GEORGE NGIGI
In Summary
- The retailer’s shares have continued dropping below the rights issue’s “discounted” price of Sh9.
Stockbrokers, however, said the 6,587,700 shares traded were
not a block sale that could have signalled the exit of a major
shareholder days to the start of the company’s rights issue. The
retailer’s shares have continued dropping below the rights issue’s
“discounted” price of Sh9.
“The counter is deteriorating in terms of
fundamental value. The core business as a retail chain business is in
growth in sales, which at less than 10 per cent with an inflation rate
of six per cent means it has been flat,” said Genghis Capital analyst,
Silha Rasugu.
The market remained generally flat with the indicative 20 share index dropping by 1.78 points to close at 5193.11 points. Safaricom
was the busiest counter, moving 7,189,300 shares at an average price of
Sh12.20 per unit. This was a slight gain, of Sh0.05 from previous
session’s trading.
Mumias Sugar,
nominally the cheapest stock in the market, held steady at Sh1.70 with
579,300 shares changing hands. NIC bank rights traded in the open market
at Sh11 down from Sh15 on Friday.
With the discounted rights issue price at Sh49.25,
investors who bought the rights in the open market will pay a total of
Sh60.25 for a share which is currently trading at Sh64.50.
There were 25,300 rights traded
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