Browsing: money markets

Corporate announcements have been salient in the bourse in the review period. To be exact, the price action at the bourse has been weighed down by COVID-19 headwinds and corporate announcements have injected some freshness. We highlight some of them in this article. 

Carbacid Investments Plc served BOC Kenya Plc late November with a notice of intention to acquire all the ordinary shares of the latter at a price of KES63.50 per share. Due to the fact that BOC Kenya owns 14.85Mn shares in BOC Kenya (representing an ownership stake of 5.83%) and to be in compliance with Section 108 of the Companies Act, 2015, Carbacid’s acquisition offer is a joint affair together with Aksaya Investments. 

BOC Holdings, which has a 65.38% ownership stake in BOC Kenya, issued an irrevocable undertaking to the co-offerors to accept the acquisition offer albeit with certain conditions. That means that the shares to be …

Concerns about the pandemic especially with new fast spreading mutations, heightened political activity and uncertainty around the shape of business and economic recovery continues weighing heavily on risk asset pricing in the local market.

The distribution of vaccines is off to a slow start especially in the developed countries while locally, news flow indicate vaccines will be available later this month than as previously indicated.…

The year has begun on a cautiously positive tone with market generally on the uptrend; activity gradually picking up following the end of the Christmas and New Year holidays. The NSE-ASI and NSE-20 are up 1.2% and 1.8%, so far this year respectively. The prospects of improvement in business environment from the depths of 2020, investors are cautiously looking at the attractive valuations in the markets although inherent risks including economic recovery, cashflow constraints and heightened political activity with the likely upcoming referendum. …

Risk asset prices rebounded globally with the benchmark MSCI (Morgan Stanley Composite Index) World trimming first quarter losses to -6.6% at the end of the first half of the year. The steady state in the global financial markets has been anchored on the accommodative policies in the developed economies and easing of containment measures in some pockets across the globe.

Some equity markets such as in the emerging world have recouped back the first quarter losses while frontier markets are trailing 18.1% from the start of the year levels. US Dow Jones Industrial Average benchmark that tracks the 30 largest listed companies, posted its hitherto best quarterly performance in 33 years with a return of 17.8% in the quarter ending June 2020.

Also Read: New rebirth for Kenyan retail sector as foreign capital flows in

Closer home, revised estimates have struck a bearish tone as per our second quarter outlook. …