NOV. 15 2017: BOC KENYA UP INSPITE OF PROFIT WARNING

At Nairobi Securities Exchange today Wednesday, November 15 2017, BOC Kenya PLC, in the manufacturing and allied sector closed Kes 5.00 up despite warning of profit drop this year.

In a notice released today, the management of the company had warned that the current year that ends next month may witness up to 25% decline in its net earnings when compared to 2016.

This was due to low level of sales and book entry adjustment for review of provision for obsolete stock allowance.

However, BOC Kenya hit a day high of Kes 110 per share, slipped to a low of Kes 107 then rallied a bit to close at Kes 108 per share, up Kes 5.00 per share. And it was the day's top Kes gain too.

Perhaps, the warning came late in the day or perhaps brokers were bullish towards the management's expectation for better performance in 2018 based on greater efficiency and recovery in demand.

BOC Kenya closed the day with deals for 6200 shares. No rush to sell.

Optimism seemed to be the order of the day as, after days on the decline, the All shares index rose by 1.02% or 1.63points to 161.64 as 16 gains as against 15 drops were recorded.

Apart from BOC Kenya, other major gains were Kes 1.00 top up each by two high priced equities: Bamburi Cement and Nation Media and two rare gainers in recent times: Equity Group and KCB Group.

Also impactful on the ASI was Kes 0.50 per share gain by Safaricom, the market's top capitalised equity and by  TPS Eastern, and Centum Investment.

On the other price drops were paced by Standard Chartered bank down Kes 7.00 per share as it touched day high of Kes 227, slipped to low of Kes 205 then closed at Kes 220 per share.

It was trailed by Total Kenya down Kes 1.50 per share as it closed at Kes 22.50 through the day after Tuesday's Kes 24.00 per share; and by Kes 1.00 drops in East African Breweries and Jubilee Holdings.

In spite of this drop, EAB contributed immensely to traded value for the day easing by only 6.29% to Kes 741.28m despite 16.8% dive in traded volume to 20.02m. It recorded deals for 1.07m shares.

Other equities with above 1m traded volume were Safaricom with 9.964m; Cooperative bank (2.62m) and KCB group with deals for 2.548m.

The bond market traded value finally slipped to Kes 454m compared to Wednesday's Kes 1.239bn after two days of closing above Kes 2bn.

Finally, trading in Kenya Airways shares was suspended today till November 28 because of ongoing restructuring of the issued capital of the company.

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