Kenya: Cigarette Maker''s Stock Touches Historical Sh1,000 At the Bourse

Source from:  The Star  10/14/2014

British American Tobacco stock opens trade today as the most expensive share on the Nairobi Securities Exchange, having closed at a historical high of Sh999 on Friday.

The stock gained Sh73 a piece and touched the Sh1,000 mark in intra-day trading. A total of 293,800 units exchanged ownership.

BAT chief executive Chris Burrell had in March ruled out a share split when the price was still below Sh600. Then, Burrell said the price was within the range of other subsidiaries of its parent company, the British American Tobacco Plc.

The cigarette maker's market value is now just shy of breaking into Sh100 billion as it has 100 million shares listed. BAT is widely viewed as a dividend stock on the NSE, but has pulled a surprise as a capital gains counter this year.

Rich Management's chief executive Aly-Khan Satchu said on Thursday that the stock "has been a bull outlier in 2013 and now 2014".

He predicts that the counter will "set fresh all-time highs in due course".

BAT maintains a strong dividend policy, making it attractive to investors in a "declining interest environment", Satchu said.

Limuru Tea, which touched a record high at Sh965 a piece on October 3, is the only other stock trading above Sh900 at the NSE, albeit on thin volumes. It has 1.2 million shares listed - the lowest on the bourse.

All other counters at the NSE are, in fact, trading shares at prices below Sh400 a piece. Enditem