Uganda-based energy utility Umeme Limited, cross-listed on the Nairobi Securities Exchange (NSE), delivered the highest returns to investors last year as its share price rose by 115.6 per cent.
The stock more than doubled in price from Sh7.42 to Sh16 in the 12 months to December 2023, putting it at the apex of the market ahead of Kapchorua Tea, whose share price was up by 89.8 per cent and Kenya Orchards, whose stock gained by 87.5 per cent to close at Sh19.50 from Sh10.40.
Umeme’s rise was partly anchored on the company’s improved earnings, which saw it announce the payout of an interim dividend equivalent to Sh1 (Sh24 Uganda shillings) payable by February 29, 2024.
Meanwhile, Kapchorua, the second top gainer, declared an interim dividend of Sh10 paid out to investors on December 13.
Eveready’s stock gained by 56.5 percent, to hit Sh1.08 from 69 cents, while Absa New Gold exchange-traded fund rounded off the top five performing securities at the NSE, rising by 34.6 percent to trade at Sh2,915.
Worst-performing counters
The notable gains were achieved as most other stocks registered dismal performance, dragged down by a depressed macroeconomic environment and foreign investor flight.
“Equities market performed poorly in 2023 occasioned by a depressed economy as evidenced by high inflations, interest rate hikes, weakening of local currency and geopolitical tensions globally,” noted analysts at Kingdom Securities Limited.
“All these combined resulted in heavy foreign exits from the local equities market and other emerging markets in search of better investment havens resulting in price erosion.”
Unga Group and Car & General were the joint worst-performing counters for the year having marked losses of 47.3 percent each across 2023.
TransCentury’s share price shed 44.1 percent in value to end the year at 52 cents from 93 cents previously.
Foreign-dominated counters — KCB Group and Safaricom — shed 42.5 and 42.4 percent of values, respectively, to close at Sh21.90 and Sh13.90 each from Sh38.10 and Sh24.15.
Most traded counter
Safaricom was the most traded counter as many foreigners exited in search of a better return on investment.
EABL’s share price performance was impacted largely by a 21.9 percent drop in net profit for the 12-month cycle to the end of June 2023.
Equities prices are, however, tipped to rise this year supported by easing forex and interest rate pressures.
“We expect equity prices to start recovering in the second half of 2024 upon easing the pressure in local currency and expected interest rate cuts,” said Kingdom Securities analysts.
“The banking and agricultural sectors are expected to recover earlier on anticipated better 2023 full-year earnings.”
