Joseph Bonyo
4 November 2009
Nairobi — Carbacid Investments Limited made a come back to the stock market on Wednesday with a 73.5 per cent increase in its share price.
The gas maker's share ended the day at an average of Sh236 up from its closing price of Sh137 in December 2005.
At one point during the session, the stock sold at a peak of Sh290 against a total of 40,200 shares traded during the day.
The performance, analysts noted, was based on the firm's recent 51 per cent pre-tax profit for the financial year ended July 31, 2009.
"The firm recently reported very good financial results as well as impressive earnings per share and dividend. This must have rallied on the share price," said CFC Stanbic Financial Services analyst Judd Murigi.
In its results, the Carbon dioxide manufacture announced an interim dividend of Sh10 and basic and diluted earnings per share of Sh22.63.
However, the situation was not the same for its previous suitor, BOC Gases, which maintained the Sh160 a piece it closed the market at four years ago.
In their fiscal results for the year ended December 31, 2008, BOC Kenya's profit after tax dropped by 25 per cent compared to its results of the previous year.
Only 11,700 shares of the firm were up for trading on Wednesday.
"We expect the appreciation to continue in the coming days but not with the same margin," explained Mr Murigi on the counters prospects.
The two firms were suspended from the bourse after a proposed acquisition went awry.
As a result of an out of court settlement reached between the Capital Markets Authority and BOC, the suspension was lifted.
But despite the counters impressive performance on its debut, the NSE 20 share index went down by 4.64 points to close at 3076.44.
The more inclusive All Share Index also dropped 0.11 points to close 67.54.
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