Kenya: Bamburi And BAT Shares Rally After Results

Source from:  Business Daily (Nairobi) 03/01/2012

The upward momentum of the share price of cigarette maker British American Tobacco (BAT) and cement maker Bamburi continued in Tuesday's trading after the two companies announced better than expected results last week. BAT shares hit a new 52-week high while the cement maker Bamburi's rose by an additional Sh13 as demand outpaced supply. The cigarette maker's shares rose to Sh320 during trading but closed the day at an average price of Sh314 with only 27,600 shares changing hands according to data from the Nairobi Securities Exchange. "It is because of last week's results. Investors looking to get in have had to bid it up and they are also looking at the dividends," said Eric Musau, a research analyst with Standard Investment Bank. The cigarette maker declared a Sh27 dividend which is expected to be paid in April, following a rise in profitability which was buoyed by increased revenues which rose by 48.7 per cent, despite higher product prices. Shilling Standard Investment Bank said that the sale of semi-processed leaf to Egypt and a weaker shilling helped revenues from export sales. Robert Munuku, head of research at Drummond Investment Bank, said that only 10,200 shares were sold at the highest price of the day while only 100 shares of the cement maker were sold at Sh154. Bamburi Cement closed the day at an average price of Sh140 after 33,200 shares changed hands as the counter continued to attract high interest from investors. Last Thursday, Bamburi announced a final dividend per share of Sh8 compared to Sh7 the previous year with analysts saying that the cement maker had posted better than expected results for the full year, which was marked by high inflation and interest rates. "Dividends have a part to play," said Mr Munuku who added that investors could be expecting BAT to continue posting high profits and Bamburi to benefit from increased construction of which cement is a major component. Kenya Power shares dropped again to close the second trading day after it released half year results to close at an average price of Sh16.65 with 477,600 shares changing hands as investors continued to react negatively to the results. Enditem