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MARKET UPDATE – AFRICA | <strong>February</strong> <strong>2015</strong><br />
We expect the<br />
market to remain<br />
on an uptrend<br />
in the coming<br />
months driven by<br />
corporate actions<br />
that are likely to<br />
have investors<br />
price in bullish<br />
expectations on<br />
select counters.<br />
EQUITY MARKET UPDATE<br />
NSE 20 Share Index Trend<br />
USD 1.8 billion deal to put up a 960 megawatt<br />
coal power plant. In view of Kenya’s<br />
pursuits to bridge its energy deficit by injecting<br />
an additional 5,000.0 megawatts by<br />
2016, investors are likely to take an upbeat<br />
view of the counter at the exchange.<br />
Centum Share Performance<br />
Source: Bloomberg, StratLink <strong>Africa</strong><br />
+3.6 %<br />
NSE 20 Share Index<br />
change year-on-year<br />
NSE 20 Share Index Month-on-Month<br />
Source: Bloomberg, StratLink <strong>Africa</strong><br />
+ 2.9 %<br />
NSE 20 Share Index<br />
change month-onmonth<br />
Source: Bloomberg, StratLink <strong>Africa</strong><br />
The market started the year on a resilient<br />
note shrugging off concerns over the Capital<br />
Gains Tax that was widely expected to<br />
dampen investor activity. We note, however,<br />
the refusal by investment banks to collect<br />
the same on behalf of the Kenya Revenue<br />
Authority could have served to buoy<br />
investor activity.<br />
We expect the market to remain on an uptrend<br />
in the coming months driven by corporate<br />
actions that are likely to have investors<br />
price in bullish expectations on select<br />
counters.<br />
Centum has also sold off its stake in UAP Insurance<br />
generating an estimated USD 43.7<br />
million. The proceeds will play a central role<br />
in meeting the company’s increasing investment<br />
in projects spanning the Fast Moving<br />
Consumer Goods market and property development.<br />
Portfolio Diversification<br />
The portfolio diversification also presents a<br />
strength for the company that could be key<br />
in helping it mitigate shocks that slow down<br />
activity in particular sectors.<br />
Housing Finance: Beefing up the<br />
‘war chest’<br />
Mortgage lending company, Housing Finance<br />
Corporation, has received the greenlight<br />
from the Capital <strong>Market</strong>s Authority to<br />
raise additional capital to a tune of USD 38.2<br />
million through a rights issue in <strong>2015</strong>.<br />
Centum Investment: Sealing the deal<br />
A consortium including financial services<br />
firm, Centum Investment, has inked the<br />
6 | StratLink <strong>Africa</strong> Ltd.<br />
www.stratlinkglobal.com
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