For a Background to this series of summaries at the close of each trading day, please READ: "Introduction to Trends in Unashig's CBshare Price and Market Capitalization"
Share Price and Market Capitalization at the Close of Specified Days of the Week
Friday, September 30th, 2022.
CBshare dipped a further 0.16%, to close at KES1,942.21 (or US$16.07, at a worsened forex rate of KES120.85 per US$). Despite that drop, its performance ranking rose from third to second -- as we see here:
1. NSE 20 Index: +0.47%2. CBshare price (25 counters): -0.16%*3. NSE 25 Index: -0.27%4. NASI (NSE All-Share Index): -0.47%.
KES1,947.40 is the new price (plus trading charges) at which a CBshare will be traded -- until 5:00 PM next Monday, October 3rd.
Unashig's market capitalization dropped 0.16% as well, to close the day at KES6,513,417.50 (or US$53,896.71).
Here's how the metrics rated, based on Week-on-Week performance (CBshare didn't do too badly):1. NSE 20 Index: -1.63%2. CBshare price (25 counters): -2.55%*3. NSE 25 Index: -2.83%4. NASI (NSE All-Share Index): -4.78%.
YTD, the price of a CBshare is 15.38% down, while Unashig's market capitalization closed 13.19% lower, reflecting recent losses and gains.
As indicated in the conversation shared at the link below, there is compelling evidence showing that the steady shedding of share value currently witnessed at the Nairobi Securities Exchange (NSE) has little to do with Kenya's just-concluded general elections, or with deteriorating performance by blue chip companies.
Instead, it has much to do with foreign investors' ongoing dumping of holdings pegged on KES, and quoted here, as a way of dealing with rising interest rates, inflation, widening currency imbalances and related opportunities and state of flux 'back home'. Though the fundamentals of Kenya's quoted companies remain relatively strong, their share prices are losing market value in rather dramatic fashion in a foreign-exchange regime that favors foreign currencies -- such as the $ and the £ -- by 'enabling' overseas investors to dump local holdings even at declining stock-price levels. What they 'lose' in such transactions they recover or more than offset locally via forex gains. How and when they re-invest or repatriate such gains for optimal effect is entirely up to them. [This paragraph was revised on Oct 2nd, 2022]
Foreign investors often feel the pressure to dump local holdings at lower local prices than they should, or bought them, as a way of decamping and going away -- and cutting forex losses. But share prices so lowered are precisely the dip moment(s) during which local investors should buy now and wait to sell later -- whenever the market "picks up" and they wish to sell.
This is what buy the dip is all about. When foreign investors return, tentatively or in full force, as they will, those who bought the dip will have more valuable holdings to offer, as they wish, and more significant leverage.
Thursday, September 29th, 2022.
CBshare's downward slide continued, though less steeply. It shed 1.33% in value, to close at KES1,945.40 (or US$16.10, at a weaker forex rate of KES120.80 per US$). However, its ranking vis-a-vis the indices rose from fourth to third -- as we see here:
1. NSE 20 Index: -0.94%2. NSE 25 Index: -1.02%3. CBshare price (25 counters): -1.33%*3. NASI (NSE All-Share Index): -1.59%.
Unashig's market capitalization dropped 1.33% as well, to close the day at KES6,524,097.00 (or US$54,007.43).
YTD, the price of a CBshare is 15.38% down, while Unashig's market capitalization closed 13.19% lower, reflecting recent losses and gains.
Wednesday, September 28th, 2022.
CBshare had a steep fall today (-1.88%). It closed at KES1,971.59 (or US$16.33, at the forex rate of KES120.71 per US$). Significant dips, during today's trading, in the prices of certain quoted securities (such as Safaricom) -- on which its own is pegged -- clearly had something to do with this fall. As a result, its ranking among the indices dropped from first to fourth -- as we see here:
1. NSE 20 Index: +0.58%2. NSE 25 Index: +0.31%3. NASI (NSE All-Share Index): -0.28%4. CBshare price (25 counters): -1.88%*.
Unashig's market capitalization dropped 1.88% as well, to close the day at KES6,611,948.00 (or US$54,775.48).
YTD, the price of a CBshare is 14.24% down, while Unashig's market capitalization closed 12.03% lower, reflecting recent losses and gains. Both these results are certainly an improvement over recent trends, certainly since mid-September. It remains to be seen how long this will continue, given the various factors beyond our control. But we shall hang in there.
Tuesday, September 27th, 2022.
CBshare made a fair gain today (+0.87%) to close at KES2,009.36 (or US$16.65, at the forex rate of KES120.75 per US$). As a result, it jumped from the second position to regain the first, and stood out for yet another reason -- as we see here:
1. CBshare price (25 counters): +0.87%*2. NSE 20 Index: -1.34%3. NSE 25 Index: -1.46%4. NASI (NSE All-Share Index): -1.82%.
Unashig's market capitalization made a 0.90% gain, to close the day at KES6,738,620.00 (or US$55,852.63).
YTD, the price of a CBshare is 12.60% down, while Unashig's market capitalization is 10.34% lower, reflecting recent losses and gains. Both these results are certainly an improvement over recent trends, certainly since mid-September. It remains to be seen how long this will continue, given the various factors beyond our control. But we shall hang in there.
Monday, September 26th, 2022.
The price of a CBshare dipped slightly (-0.05%) to close at KES1,992.01 (or US$16.51, at the forex rate of KES120.65 per US$). However, its ranking shifted upwards -- from third to second, as shown below:
1. NSE 20 Index: +0.07%2. CBshare price (25 counters): -0.05%*3. NSE 25 Index: -0.41%4. NASI (NSE All-Share Index): -0.70%.
Unashig's market capitalization gained only 0.04%, to close the day at KES6,678,448.00 (or US$55,353.90).
YTD, the price of a CBshare is down 13.35%. Unashig's market capitalization is also lower (-11.14%), YTD, reflecting recent losses and gains.
The average number of CBshares held per shareholder remains very low, however. This is not conducive to rapid capital/asset growth, or the generation of substantial and distributable dividend income. For over 12 months, the value of our CBshare has proven that Unashig's investment decisions continue to be competitive with, and quite frequently superior to, those pegged on the trajectory of any, or often all, of the three active NSE indices.
READ: The Core Business of Unashig Kenya PLC.
FOR SUMMARIES FOR EARLIER DATES, PLEASE READ: "UNASHIG's Share Price and....Capitalization, September 19th to September 23th 2022."
