KenolKobil up 29.3%:
KenolKobil (KENO) was the star performer on the Nairobi Securities Exchange (NSE) in November. The stock rose 29.3% for the month. The gains in the petroleum stock seem to have been supported by investor hope that the company will continue to enjoy great profit margins given the dislocation in the global oil market.
Crude oil prices in the international market have remained depressed for more than two years now and investors expect the condition to continue in 2017, supporting the buying of promising petroleum stocks like KenolKobil.
While crude oil prices have nearly halved in the global market, petroleum prices in Kenya haven’t dropped as much, allowing KenolKobil and its peers to enjoy large spreads.
But KenolKobil’s rival Total Kenya (TOTL) was bruised in the month, perhaps suffering the impact of investors outflow from its stock as they buy KenolKobil shares. Total stock retreated 4.72% for the month.
Mumias up 22.7%:
Mumias Sugar Company (MSC) stock was the second-largest gainer in November. The stock rose 22.7% for the month. Investors have been returning to Mumias stock as they bet on the company’s successful turnaround plan under expatriate CEO Eroll Johnson, an Australian. The government is backing Mumias’ turnaround efforts with a loan.
Kakuzi up 18.9% to top agricultural sector chart:
Kakuzi (KUKZ) stock was the third-largest gainer in November. The stock rose 18.9% for the month, beating all its sector peers. Kakuzi seems to have benefited from increased investor inflow to its shares as some of its rivals face prospects of higher operating costs as workers demand better pay. Williamson Tea Kenya (WTK), which rose 6.6% for the month and Kapchorua Tea Company (KAPC), which finished flat for the month, are battling employees’ push for high salaries.
Kakuzi’s competitors largely registered mixed performance in November. Limuru Tea Company (LIMT) rose 8.2%, Eaagads (EGAD) dropped 1.4% and Sasini Tea and Coffee (SASN) declined 3.4%.
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