Kenya Power shares demand shoots up on earnings prospects
Demand for Kenya Power shares outstripped supply yesterday as investors poured money into the penny stock on expectations that the government will steer the company towards profitability.
This happened even as market turnover retreated to Sh351 million from the previous sessions Sh851 million, with the number of shares traded standing at 13 million against 34 million posted the previous trading day. Kenya Power stock moved three million shares with traders saying supply was short given that the counter had moved nine million shares on Monday
“Kenya Power is up another 10 per cent today to hit a high of Sh1.93. There is not supply to be seen in the market,” said Mwango Capital, a financial research firm.
This comes on the back of talk that Kiharu MP Ndindi Nyoro has been racking up the stock to become the single largest individual owner of the stock. “KPLC shares demand is through the roof. As at 1200hrs, it was the top gainer,” said Prime Securities. Nyoro tripled his shares from 9,116,800 shares at the end of June 2021 to 27,291,400 shares by the end of June 2022.
“The Ndindi Nyoro effect. Retail institutions or a combination of both are buying up KPLC shares. Even the volume today nearly surpassing Safcom’s. Very anomalous indeed,” said Embe Capital yesterday.
The lawmaker, who would be serving his second term as Kiharu MP, disclosed that the State-owned utility’s enormous income and assets were what drove his desire to invest there.
“I am purchasing KPLC shares because I feel we can address electrical difficulties when permitted to make decisions. It has a lot of sleeping money that can be utilised to aid more homes. The firm is valued at less than 1 per cent of its asset worth.”
The National Treasury will possess the most shares as at the end of June 2022, totaling 978,492,034. This was an increase of 850,339 from the assessment from the previous year. – John Otini
