Nairobi Securities Exchange stocks:
Longhorn Kenya Ltd (NSE:LKL) gains on Centum (ICDC) story
Investors showed appetite for Longhorn Kenya Ltd (NSE:LKL) shares on Monday just days after Centum Investment Company Ltd (NSE:ICDC) nearly doubled its stake in the publishing company to 60%. Longhorn shares moved north 3.13% to settle at Sh4.95 by closing bell. During Monday’s action, the shares ascended to a high of Sh5.10 and dipped to a low of Sh4.90.
The Monday session saw 22,300 shares on Longhorn Kenya Ltd (NSE:LKL) traded, amounting to day’s turnover of Sh111,450. Over the last one year, Longhorn shares have rallied up to a high of Sh7.90 and dropped to a low of Sh3.70. We you look closely, you can see that the shares are currently trading near their one-year low.
Nation Media Group (NSE:NMG) sheds 2.45%
Shares of Nation Media Group (NSE:NMG) pulled back 2.45% during Monday’s trading to close the day at Sh159, which was the day’s lowest price level. The stock earlier in the day soared to Sh163 but gave up all the gains before the closing bell. Some 700 shares changed hands during Monday’s session, leading to a turnover of Sh111,700. NMG shares have touched a high of Sh220 and a low of Sh130 over the last 52-weeks.
What caused the decline? The Monday selloff in Nation Media Group (NSE:NMG) shares can be explained by the recent development in which the company’s immediate former CEO, Linus Gitahi recently teamed up with likeminded investors, including former NMG employees, to set up an advertising agency called Oxygene Marketing Communications. Although Oxygene is not in direct competition with Nation Media Group, some investors appeared to be speculating that Gitahi’s move would inspire some existing and former NMG employees to come together to create a rival media company.
The panic among Nation Media Group investors over Gitahi’s move could also been seen in the movement of Standard Group Ltd (NSE:SGL) shares. Shares of NMG’s chief rival gained 7.69% to close at Sh28, suggesting that investors saw it as an alternative to holding Nation Media Group (NSE:NMG).
WPP ScanGroup Ltd (NSE:SCAN) sinks under the weight of Oxygene
Shares of marketing and media services giant WPP ScanGroup Ltd (NSE:SCAN) fell 2.33% during Monday’s trading to settle at Sh21. The Sh21 closing price set a new 52-week low for the stock. Before the close, WPP ScanGroup Ltd (NSE:SCAN) managed to ascend to Sh21.75 but couldn’t sustain the gains and gave them up before the bell. Some 11,500 shares of ScanGroup were traded on Monday.
The launch of a rival company Oxygene Marketing Communications led by former Nation Media Group (NSE:NMG) CEO, Linus Gitah triggered the selloff in WPP ScanGroup Ltd (NSE:SCAN). Oxygene is expected to clip away ScanGroup’s market share and consequently slowdown its growth or squeeze its profit margins.
Nairobi Securities Exchange stocks:
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