Top performing stocks for the last five months

May 28, 2015
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Kakuzi Limited, Crown Paints and Jubilee Holdings are the top three gainers at the Nairobi Securities Exchange (NSE) from January to May 27, 2015.
Kakuzi Limited, Crown Paints and Jubilee Holdings are the top three gainers at the Nairobi Securities Exchange (NSE) from January to May 27, 2015.

, NAIROBI, Kenya, May 28 – Kakuzi Limited, Crown Paints and Jubilee Holdings are the top three gainers at the Nairobi Securities Exchange (NSE) from January to May 27, 2015.

Kakuzi stocks gained 67 percent to trade at Sh300, Crown Paints 44 percent to trade at Sh160 while Jubilee holdings gained 28 percent to trade at Sh574 managing to defy the downtrend in equity prices that has seen the stock market lose 5.5 percent during the period under review.

Other top gainers include Sasini that gained by 26 percent to trade at Sh16.40 and Limuru tea that gained by 23 percent to trade at Sh950.

“These stocks all tend to trade very thinly, and have posted significant gains for the year to date on marginal volumes, despite a lack of supportive fundamentals – excepting, Jubilee Holdings, which posted a 26 percent jump in earnings per share for 2014 full year and looks set for further growth this year,” said Jonathan Wakahe Senior Portfolio Manager Pan Africa Asset Management in an Interview with Capital FM Business.

Kenya Power came in sixth place as its stocks gained 11 percent following the release of stellar half year numbers, with first half total revenue up 19 percent to Sh57.9 billion, first half operating profit up 28 percent to Sh8.7 billion.

Kenya Power enjoyed a tailwind for the period in the form of a tariff increase, which raised the base unit price and helped the firm achieve robust top line growth.

“We feel that increasing efficiencies will continue to positively impact Kenya Power’s numbers, but are cautious on the stock on the basis of massive near-term capital expenditure, which will likely force the firm to grow the debt on its books significantly,” Wakahe said.

Safaricom took the seventh position with its share price appreciating by 8 percent trade at Sh15.20 largely driven by the anticipation of a solid set of full year figures for the telecommunications firm, whose financial year ends March 31.

The firm recorded a 38 percent increase in profit after tax in full year results with total revenue increasing by13 percent to Sh163.4 billion and a jump in earnings per share of 40 percent, and a dividend payout of Sh0.64 per share, representing an increase of 36 percent on the previous year’s dividend.

READ: Safaricom records Sh31.9 billion profit Collymore gets 2 more years.

Wakahe is however wary the market as a whole appears headed even lower as foreigners pull out and local investors continue to trim their equity holdings.

“Key among investors’ concerns are the tumbling shilling (which erodes the overall returns earned by foreign investors), rising inflation and the lack of clear policy direction, all reminiscent of 2011 when the lack of definitive policy measures saw inflation skyrocket and the shilling fall to unprecedented lows,” he added.

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