Eq­uity edges past EABL at bourse

Business Daily (Kenya) - - FRONT PAGE - Charles Mwaniki [email protected]­tion­media.com

Eq­uity Hold­ings has edged ahead of East African Brew­eries Lim­ited (EABL) as the sec­ond-largest irm at the Nairobi bourse fol­low­ing a price rally last week.

Eq­uity Hold­ings has edged ahead of East African Brew­eries Lim­ited (EABL) as the sec­ond-largest firm at the Nairobi bourse fol­low­ing a price rally last week.

Eq­uity and EABL are now val­ued at Sh139.4 bil­lion and Sh129 bil­lion re­spec­tively as per Fri­day’s clos­ing share prices of Sh36.95 and Sh163.

Eq­uity gained 9.4 per cent in the last three ses­sions of the week while EABL dropped by 3.8 per cent, al­low­ing the bank to pull ahead hav­ing trailed the brewer by Sh6.7 bil­lion in mar­ket cap on Tues­day.

The two firms have been swap­ping po­si­tion on the list in re­cent months, with Eq­uity open­ing up a gap of more than Sh20 bil­lion on EABL by the end of Novem­ber fol­low­ing a rally that saw the lender’s share price hit Sh40.

This rally al­lowed Eq­uity to surge ahead of EABL, which was trad­ing at Sh162 go­ing into De­cem­ber. The brewer has since then traded as high as Sh197, al­low­ing it to close the gap and at times surge ahead of Eq­uity.

Both stocks, how­ever, re­main un­der pres­sure due to the for­eign in­vestor sell­ing that has hurt large blue chip firms’ shares at the bourse.

For a long time, EABL was the sec­ond-largest firm af­ter tele­coms gi­ant Sa­fari­com. But the brew­ing gi­ant has lost 31 per cent of its mar­ket value in the past 12 months com­pared to Eq­uity’s 14 per cent, al­low­ing the banks to close the gap.

Sa­fari­com re­mains the largest com­pany at the bourse, ac­count­ing for 42 per cent of to­tal mar­ket cap­i­tal­i­sa­tion.

Al­though the telco has not been spared the price slide af­fect­ing the mar­ket, its mar­ket cap is still big­ger than that of the next 13 com­pa­nies com­bined.

The firm has a mar­ket cap of Sh938 bil­lion, hav­ing closed at Sh23.40 a share on Fri­day. The next 13 firms, which in­clude eight of the 12 listed banks, have a col­lec­tive mar­ket cap of Sh910 bil­lion.

--FILE

Nairobi Se­cu­ri­ties Ex­change staff mon­i­tors trad­ing.

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