NSE’s best and worst 2019 stocks revealed

Stockbrokers at the Nairobi Securities Exchange. FILE PHOTO | NMG Loss-making tyre distributor Sameer Africa #ticker:FIRE emerged as the best stock in 2019 at the Nairobi Securities Exchange (NSE) with Kenya Airways #ticker:KQ ranked as the worst in a year when the bourse is in line to make a 16.6 percent return.

Sameer Africa’s share has gained 81 percent since the start of the year and closed trading at Sh3.35 Thursday, meaning an investor who invested Sh1 million in the stock on January 2 has gained Sh810, 000.

In contrast, investors who bought Kenya Airways shares worth Sh1 million, suffered a loss of Sh773,000 given the share has shed 77.3 percent since the start of the year to stand at Sh2.02 at close of trading Thursday.

This analysis is based on investors who buy shares at the start of the year and measures their return at the end of the trading season in a review that does not capture speculators who enter and exit stocks in short periods.

Sameer, whose a half-year losses widened to Sh182.8 million, offered better returns than Safaricom and top banks like Equity and KCB—which have recently emerged ass the jewel stocks for investors seeking returns.

“These small cap stocks like Sameer see price shifts based on thin volumes, hence the big story in the market this year has been the removal of the rate cap in the fourth quarter, which alongside the NIC-CBA merger has given the large bank stocks a shot in the arm,” said Standard Investment Bank analyst Martin Kirimi.

“This combined with Safaricom performance has uplifted the whole market.” The market has gained Sh348 billion so far with all shares valued at Sh2.45 trillion, a reversal from last year when it shed Sh400 billion.

The Safaricom share movement has a huge bearing on the overall market performance given that it accounts for 49 percent of the NSE market value, which grows to 79.8 percent when banking stocks are included.

Safaricom and four banks—Equity #ticker:EQTY, KCB #ticker:KCB, NCBA #ticker:NIC and Barclays #ticker:BBK– are appearing on the top 10 list of firms that have delivered higher returns.

Equity was the second top gainer with a share appreciation of 53.5 percent to close trading at Sh53.50, followed by KCB (41.5 percent), Safaricom #ticker:SCOM (39.2 percent), Express Kenya #ticker:XPRS (36 percent) and Longhorn #ticker:LKL (30.6 percent).

NCBA, which is the product of a merger between CBA Group and NIC, was ranked seventh with a return […]

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