DOCSLIB.ORG

Effect of Free Cash Flow on Profitability of Firms in the Manufacturing and Allied Sector Listed at the Nairobi Securities Exchange for the Period 2013-2017

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Effect of Free Cash Flow on Profitability of Firms in the Manufacturing and Allied Sector Listed at the Nairobi Securities Exchange for the Period 2013-2017 EFFECT OF FREE CASH FLOW ON PROFITABILITY OF FIRMS IN THE MANUFACTURING AND ALLIED SECTOR LISTED AT THE NAIROBI SECURITIES EXCHANGE FOR THE PERIOD 2013-2017 BY TRACY WANJIKU UNITED STATES INTERNATIONAL UNIVERSITY- AFRICA SPRING 2019 EFFECT OF FREE CASH FLOW ON PROFITABILITY OF FIRMS IN THE MANUFACTURING AND ALLIED SECTOR LISTED AT THE NAIROBI SECURITIES EXCHANGE FOR THE PERIOD 2013-2017 BY TRACY WANJIKU A Research Project Report Submitted to the Chandaria School of Business in Partial Fulfillment of the Requirements for the Degree of Masters in Business Administration (MBA) UNITED STATES INTERNATIONAL UNIVERSITY- AFRICA SPRING 2019 i STUDENT’S DECLARATION I declare this work has not been submitted to any other university other than United States International University-Africa, it’s my original work which has been submitted for the Academic purposes. Signed: ________________________ Date: ______________________ Tracy Wanjiku (ID NO: 639808) This project has been presented for examination with my approval as the appointed supervisor. Signed: ________________________ Date: ______________________ Mr. Kepha Oyaro Signature __________________________ Date____________________ Dean, Chandaria School of Business ii COPYRIGHT All rights reserved. No part of this project may be reproduced or transmitted in any form or by any means, electronic or otherwise, without prior written permission from the author. © Copyright by Tracy Wanjiku, 2019. iii ABSTRACT The general objective of the study was to determine the effect of free cash flow on profitability of firms in the manufacturing listed in Nairobi Securities Exchange. The study adopted the following specific objectives; to examine the effect of operating cash flows on the profitability, to establish the effect of investing cash flows on the profitability, and to determine the effect of financing cash flows on the profitability. The study adopted a descriptive survey in analyzing the effect of free cash flow on the profitability of manufacturing firms listed at the Nairobi Securities Exchange. The population of interest in this study was secondary data from the Nairobi securities exchange where information was obtained for a period of five years for the listed Manufacturing and Allied companies in the Nairobi Securities Exchange. The researcher used of census sampling technique. For this study, the sampling frame was sourced from all the nine listed manufacturing companies in the Nairobi Securities Exchange. The study used both secondary data from annual reports and primary data from questionnaires. Secondary data was extracted from audited annual reports and financial statements of manufacturing firms sourced from Nairobi Securities Exchange and Companies websites for a period of five years (2013 –2017). The data was collected, coded and input to SPSS (Statistical Package for the Social Sciences Ver.25) for analysis. Descriptive statistics was used in terms of frequency distribution tables. Inferential statistics was used to draw conclusions about the effect of free cashflows on profitability of manufacturing firms using a regression model. The results of the study on first objective indicated a correlation between operating cash flows and ROA in which there was a strong positive and statistically significant relationship between operating cash flows and ROA. The results of regression analysis showed that operating cash flows explain 80.9% of return on assets of manufacturing and allied firms. The findings of the second objective showed that the correlation between investing cash flows and ROA and there was a strong positive and statistically significant relationship between Investing cash flows and return on assets as a measure of financial performance. The results of regression analysis showed that investing cash flows explains 96.3% of ROA of manufacturing and allied firms in the NSE. iv The findings of the third objective showed that cashflows from financing and ROA indicating a strong positive and statistically significant relationship between financing cashflows and ROA. Regression analysis showed that financing cash flows explains 89.2% of ROA for the manufacturing and allied firms in the NSE. The study concludes that operating cash flow management influence the profitability of manufacturing and allied firms in Kenya positively, operating cash flow is that manufacturing and allied firms generate money from their main business and are not facing a liquidity problem. Secondly, management of the listed firms of manufacturing firms should continue to invest in activities as it has positive implications towards its cashflows. Thirdly, cashflows from financing for the listed manufacturing have a positive impact towards this companies. The listed companies should take appropriate cashflows in financing their internal projects that are more profitable. The study recommends that; management of the manufacturing firms should practice good cash management in their firms. It is essential for the company to maintain an appropriate level of cash from operating activities. Secondly, manufacturing and allied firms should seek internally generated funds since they are cheaper to finance their investment needs especially short-term projects and long-term projects that require immediate commitment. Lastly the financial efficiency is required in managing costs, increasing efficiency and financial performance of listed manufacturing companies in Kenya. The companies should not rely more on financing because it affects financial performance negatively and increases the risk of bankruptcy. The study recommends on further studies that further studies can be done in this area, they may include: the relationship between leverage and investments for the manufacturing and allied firms to quite clearly know the strength of the relationship and whether leverage can be indeed a factor that affects investment. v TABLE OF CONTENTS STUDENT’S DECLARATION .............................................................................................. ii COPYRIGHT ..........................................................................................................................iii ABSTRACT ............................................................................................................................. iv ACKNOWLEDGEMNT ........................................................................................................ ix DEDICATION.......................................................................................................................... x LIST OF TABLES .................................................................................................................. xi LIST OF ABBREVIATIONS AND ACRONYMS ............................................................xiii CHAPTER ONE ...................................................................................................................... 1 1.0 INTRODUCTION.............................................................................................................. 1 1.1 Background of the Study ..................................................................................................... 1 1.2 Statement of the Problem ..................................................................................................... 5 1.3 General Objective ................................................................................................................ 7 1.4 Specific Objectives .............................................................................................................. 7 1.5 Significance of the Study ..................................................................................................... 7 1.6 Scope of the study ................................................................................................................ 8 1.7 Definition of Terms.............................................................................................................. 8 1.8 Chapter Summary ................................................................................................................ 9 CHAPTER TWO ................................................................................................................... 11 2.0 LITERATURE REVIEW ............................................................................................... 11 2.1 Introduction ........................................................................................................................ 11 2.2 Effects of Operating Cash Flows on Profitability .............................................................. 11 2.3 Effects of Investing free cash flows on Profitability ......................................................... 17 2.4 Effects of Financing Cash Flows on Profitability .............................................................. 23 2.5 Chapter Summary .............................................................................................................. 29 vi CHAPTER THREE ............................................................................................................... 30 3.0 RESEARCH METHODOLOGY ................................................................................... 30 3.1 Introduction ........................................................................................................................ 30 3.2 Research Design................................................................................................................. 30 3.3 Population
Load more

Recommended publications
  • 2013 NSE Handbook
    2012-2013 HANDBOOK DISCLAIMER: No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the Nairobi Securities Exchange (NSE). Care has been taken in the preparation of this Handbook, however no representation, warranty or undertaking is given by the Nairobi Securities Exchange as to the accuracy of the information contained therein and accepts no responsibility or liability whatsoever. For more information about the NSE Handbook, please contact: The Nairobi Securities Exchange, Information Services, The Exchange Building, 55 Westlands Road, Westlands, Nairobi. Tel: 254-20-2831000, Fax 254-20-2224200, E-mail: [email protected], Website: www.nse.co.ke 2 Nairobi Securities Exchange | Handbook 2013 CHIEF EXECUTIVE’S NOTE The Nairobi Securities Exchange is pleased to present the NSE Handbook 2013. It is an annual publication of the Exchange containing a 5-year financial review of all companies that have listed equity on the Nairobi Securities Exchange. The Handbook has been compiled from the 2012 Annual Reports of all the listed companies. The information contained in the Handbook is intended to serve as a general reference. It does not, by itself, provide answers to all questions which should be asked about listed equities and their prospects. It should prove to be a useful guide for investment decision-making and market analysis. Our aim is to provide retail as well as institutional investors with key management and statistical information that will help them gain a better understanding of the companies in which they have already invested or plan to invest.
    [Show full text]
  • Report & Accounts 2007
    Report & Accounts 2007 BOC - Making a Difference to The World Its a beautiful world 01 The world is our stage 02 Industrial solutions simplified 04 Providing that healing touch 06 Weaving a Safety framework 08 Engineering dreams into reality 10 Board of Directors 12 Directors Report & MDA 14 Report on Corporate Governance 24 Balance Sheet 36 Profit & Loss Account 37 Cash Flow Statement 38 Schedules 40 Auditors Report 65 Ten Years Financial Data 68 Industrial solutions simplified As a member company of The Linde Group, the leading company in gases and engineering space, we strive to raise the bar on performance through continuous innovation. From steel making to food processing, from oil refineries to glass manufacturing, from pharmaceuticals to electronics manufacturing, we offer innovative gas solutions and processes. We, thus contribute significantly towards improving our productivity and quality for a wide range of customers. Apart from the traditional applications in Steel, we now cater to a wide range of applications in bulk drug manufacturing, shrink fitting, purging and inerting applications in petrochemicals/refinery and food packaging , pharmaceuticals, flame cutting, oxy lancing, laser and metal fabrication markets, fire suppressant and refrigerant gases, earth moving and farm equipment manufacturers. The liquid oxygen business meets the industrial requirement of iron making, ship cutting, profile and laser cutting of metals. Our special gases business services those industries which employ a high pure calibration/process. This section of our business also provides customized gas mixtures, and Helium to the industry segments of metal cutting, optic fiber, petroleum and refinery, automobile, research laboratories, and defence. Our global strategy is to acquire a leading position in emerging markets.
    [Show full text]
  • NSE Monthly Trading Highlights October 2013
    NSE Monthly Trading Highlights October 2013 Market Indicators CONTENT Table 1: Key Market Indicators -Monthly Comparisons Market Indicator September 2013 October 2013 %Change NSE 20 Share Index 4,793 4,936 2.98 Page NSE All Share Index (NASI) 127 131 3.15 Market Indicators--------------1 Market P/E Ratio 16 17 4.42 Market Capitalization (Kshs.billions) 1,791 1,874 4.63 No. of issued shares (billions) 80 81 1.25 Equity Market ------------------2 No. of shares traded (millions) 489 804 64.42 No. of equity transactions 31,849 39,915 25.33 Equity turnover (Kshs.millions)-ET 10,062 15,937 58.39 Bond Market -------------------3 % foreign participation to ET 56 56 - Bond turnover (Kshs.billions) 29 52 79.31 Bond deals 364 603 65.66 Kshs/US Dollar currency exchange 87 85 (1.89) No. of trading days 21 22 4.76 Table 2: Market Performance by Index for Selected African Markets Market/Index 31 October 2013 % change MTD %Change YTD Malawi- All Share 12,219 15.22 103.13 Ghana-GSE ALSI 2,100 3.39 75.03 Kenya-FTSE NSE 15 Index 175 5.08 38.89 Zimbabwe-Industrial 210 4.84 37.62 Rwanda RSE Index 218.2 (0.21) 35.16 Zambia-All Share 5,003 4.3 34.31 Nigeria- All Share 37,623 2.84 33.99 Uganda -All Share 1,611 3 33.86 BRVM-Composite 207.6 1.57 24.61 Tanzania -All Share 1,838 10.02 23.72 Namibia- Local 326 3.23 19.09 Mauritius-Semdex 2,038 3.91 17.67 Botswana BSE DCI 8,723 1.50 16.15 South Africa-All Share 45,518 3.37 15.97 Egypt-EGX 30 6,182 9.99 13.17 Swaziland- SSX All Share 287 0.00 0.41 Morocco-MORALSI 9,385 8.21 0.28 Tunisia- TUNIS 4,490 0.61 (1.97) Source: respective markets, African Aliance Securities weekly report, MTN-month to date, YTD-year to date DISCLAIMER: Care has been taken in the preparation of this bulletin.
    [Show full text]
  • Pan Africa Index and Currency Movements Top 5
    6th December, 2013 PAN AFRICA INDEX AND CURRENCY MOVEMENTS Country Index Name Index One Day MTD YTD 1 Year 1 Year FX Rate 1 Day MTD YTD Dollar Return % change Level % Chg % Chg % Chg High Low Current % Chg % Chg % Chg 1 Day MTD YTD Botswana BSE DCI 8,682.49 0.03 -0.07 15.61 22,116.00 7,255.90 1.00 761.87 761.87 678.51 762.10 761.27 800.03 Egypt EGX30 5,325.14 0.66 12.06 -2.51 5,969.39 4,523.32 1.00 600.98 600.98 536.39 605.63 685.49 520.40 Ghana GSE Composite 1,888.25 0.24 0.56 57.39 1,909.04 1,016.70 1.00 101.50 101.50 90.45 101.98 102.64 199.75 Ivory Coast IC COMP 208.77 0.91 -1.01 25.33 222.63 141.40 1.00 50,328.00 50,328.00 49,826.00 50,786.25 49,818.70 62,470.99 Kenya NSE 20 4,640.50 0.87 0.92 12.28 416,049.00 3,778.10 1.00 8,500.00 8,500.00 8,510.00 8,574.87 8,579.19 9,567.19 Malawi MSE AISI 6,999.98 0.06 1.24 16.37 6,999.98 5,874.77 1.00 32,600.00 32,600.00 33,369.50 32,620.57 33,004.49 38,846.96 Mauritius SEMDEX 1,869.06 -0.37 -2.38 7.91 1,956.29 1,653.98 1.00 3,000.00 3,000.00 2,955.00 2,988.48 2,926.20 3,196.64 Morocco MADEX 15,490.30 0.00 0.00 0.00 1.00 752.41 752.41 746.43 752.41 752.41 746.43 Namibia LOCAL 304.05 0.47 0.88 11.15 304.05 237.23 1.00 911.68 911.68 747.35 916.43 920.58 841.79 Nigeria NIG ALSI 37,128.40 0.31 2.67 32.23 40,012.66 20,025.93 1.00 15,950.00 15,950.00 15,515.00 15,999.55 16,377.88 20,547.60 South Africa JSE ALSI 39,638.54 -0.33 0.15 0.99 42,016.45 36,818.76 1.00 911.67 911.67 747.35 908.35 913.21 755.73 Swaziland SSX ALSI 289.42 0.00 0.00 1.31 289.42 284.32 1.00 911.67 911.67 747.35 911.67 911.67 758.47
    [Show full text]
  • Fundamental Analysis of Stock Returns of Non Financial Firms Listed at The
    FUNDAMENTAL ANALYSIS OF STOCK RETURNS OF NON FINANCIAL FIRMS LISTED AT THE NAIROBI SECURITIES EXCHANGE BERNARD NTHENGE MUIVA D61/61073/2011 A RESEARCH PROJECT REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF DEGREE OF MASTER OF BUSINESS ADMINISTRATION, SCHOOL OF BUSINESS, UNIVERSITY OF NAIROBI NOVEMBER, 2014 DECLARATION This research project report is my original work and has not been presented for a degree in any other university. Benard Nthenge Muiva D61/61073/2011 Signed…………………………….. Date………………………………… This research project report has been submitted for examination with my approval as university supervisor. Dr. Fredrick Ogilo Lecturer, Department of Finance and Accounting School of Business, University of Nairobi Signed…………………………….. Date………………………………… ii DEDICATION I dedicate this research project to my family for the special part they occupy in my life and for the support they accorded me during the entire period of study. iii ACKNOWLEDGEMENT First and foremost my gratitude goes to God who has enabled me this far. I wish to thank Him for His Grace and Mercy in seeing me through the MBA programme. Secondly, special thanks goes to my research project supervisor Dr. Ogillo for not only providing unlimited, invaluable and active guidance throughout the study but also for his constructive criticisms that helped shape up this project to the product it is now. I also wish to appreciate the efforts of the university moderator Mr. Mirie Mwangi for his efforts that ensured the progress of this project. Thirdly, I owe my gratitude to a great pool of people who in one way or another made contributions towards completion of this project.
    [Show full text]
  • Annual Report and Financial Statements for the Year Ended 31 December 2019 1 Table of Contents
    COVER NOTICE OF DEFERMENT OF ANNUAL GENERAL MEETING AND RELATED MATTERS Dear Shareholders, The World Health Organization categorized the severe acute respiratory syndrome Coronavirus 2 (Covid-19) as a pandemic and our Government, in response upon advent of the virus in Kenya, announced bold measures to contain the spread of the virus including suspension of public gatherings and meetings nationwide. The Capital Markets Authority (CMA) together with other capital markets industry stakeholders also unveiled measures designed to support the national strategy to manage the impact of Covid-19 and to ensure business continuity. To address the challenges posed by the need for social distancing occasioned by Covid-19 the CMA, vide Circular Nos. CMA/MRT/003/2020 and CMA/MRT/004/2020, recognized the need for deferment of imminent Annual General Meetings (AGMs) and in addition provided regulatory flexibility by allowing the progression, by Boards of issuers of securities to the public, of some of the activities usually sanctioned during AGMs for listed companies namely; declaration and payment of dividends, allotment of shares by way of capitalization of reserves or undistributed profits or scrip dividends, re-election of directors and the appointment and remuneration of auditors. In view of the above Government and regulatory directives and guidance, the Board of BOC Kenya Plc hereby gives NOTICE to Shareholders of the following: 1. The 2020 AGM of the Company, ordinarily convened during the month of June in any year, is deferred in compliance with Government social distancing directives, to an appropriate point in time when social distancing guidelines are lifted by the Government.
    [Show full text]
  • Linde Ag Financial Statements 2017
    FINANCIAL STATEMENTS FOR THE 2017 FINANCIAL YEAR Linde AG Financial Statements 2 Balance sheet of Linde AG 3 Income statement of Linde AG Notes to the ­­Financial Statements of Linde AG 4 General information 6 Statement of non-current ­­asset movements in Linde AG 8 Notes to the balance­­ sheet 15 Notes to the income statement 17 Supplementary information on the notes 48 Independent auditor’s report Further Information 54 Responsibility statement 55 Financial calendar 56 Tables Imprint 2 Balance sheet of Linde AG 3 Income statement of Linde AG Notes to the ­­Financial Statements of Linde AG 4 General information 6 Statement of non-current ­­asset movements in Linde AG 8 Notes to the balance­­ sheet 15 Notes to the income statement 17 Supplementary information on the notes 48 Independent auditor’s report Financial Statements SECTION 1 LINDE AG FINANCIAL STATEMENTS 2017 BALANCE SHEET OF LINDE AG BALANCE SHEET OF LINDE AG – ASSETS 1 in € million Note 31.12.2016 31.12.2017 Intangible assets 82 63 Tangible assets 458 492 Financial assets 17,553 17,587 NON-CURRENT ASSETS [1] 18,093 18,142 Inventories [2] 2,951 2,963 Less advance payments received from customers –2,951 –2,963 Receivables and other assets [3] 2,110 1,810 Securities [4] 107 606 Liquid assets [5] 168 285 CURRENT ASSETS 2,385 2,701 PREPAID EXPENSES AND DEFERRED CHARGES [6] 130 138 TOTAL ASSETS 20,608 20,981 BALANCE SHEET OF LINDE AG – EQUITY AND LIABILITIES 2 in € million Note 31.12.2016 31.12.2017 Capital subscribed 475 475 Conditionally authorised capital of €57 million (2016:
    [Show full text]
  • CARBACID INVESTMENTS Plc REPORT and FINANCIAL STATEMENTS 2017
    CARBACID INVESTMENTS plc REPORT AND FINANCIAL STATEMENTS 2017 CARBACID INVESTMENTS PLC (FORMERLY CARBACID INVESTMENTS LIMITED) ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2017 CONTENTS PAGES Corporate information 2 Chairman’s statement 3 - 4 Statement of corporate governance 5 – 8 Directors’ remuneration report 9 Report of the directors 10 - 11 Statement of directors’ responsibilities 12 Independent auditors’ report 13 - 16 Financial statements: Consolidated statement of profit or loss and other comprehensive income 17 Company statement of profit or loss and other comprehensive income 18 Consolidated statement of financial position 19 Company statement of financial position 20 Consolidated statement of changes in equity 21 Company statement of changes in equity 22 Consolidated statement of cash flows 23 Company statement of cash flows 24 Notes to the consolidated and company financial statements 25- 61 1 CARBACID INVESTMENTS PLC (FORMERLY CARBACID INVESTMENTS LIMITED) CORPORATE INFORMATION DIRECTORS D N O Awori - Chairman B C Patel M K R Shah J M Wanjigi R A Shepherd - Deceased (7 December 2016) S O Mudhune - Appointed on 7 July 2017 AUDIT & RISK COMMITTEE S O Mudhune - Chairperson B C Patel M K R Shah SECRETARY N P Kothari FCPS (Kenya) FCIS 2nd Floor, Apollo Centre, Vale Close, Ring Road Parklands, Westlands P O Box 764 - 00606, Sarit Centre Nairobi REGISTERED OFFICE 2nd Floor, Apollo Centre, Vale Close, Ring Road Parklands, Westlands P O Box 764 - 00606, Sarit Centre Nairobi REGISTRARS AND Axis Kenya TRANSFER OFFICE 2nd Floor, Apollo Centre, Vale Close, Ring Road Parklands, Westlands P O Box 764 - 00606, Sarit Centre Nairobi AUDITORS Deloitte & Touche Certified Public Accountants (Kenya) Deloitte Place, Waiyaki Way, Muthangari P O Box 40092 - 00100, GPO Nairobi BANKERS Commercial Bank of Africa Limited Upper Hill Branch Mara & Ragati Road P O Box 30437 - 00100, GPO Nairobi Stanbic Bank Limited Upper Hill Medical Centre Branch Ralph Bunche Road P O Box 2492 – 00200, City Square Nairobi ADVOCATE Wainaina Ireri & Co.
    [Show full text]
  • CARBACID INVESTMENTS Plc
    CARBACID INVESTMENTS plc REPORT AND FINANCIAL STATEMENTS 2018 Carbacid Investments plc Annual report and financial statements For the year ended 31st July 2018 CONTENTS PAGE Corporate information 1 Notice of meeting 2 Chairman's statement 3 - 4 Statement of corporate governance 5 - 9 Board of directors 10 Directors' remuneration report 11 Report of the directors 12 - 13 Statement of directors' responsibilities 14 Report of the independent auditor 15 - 17 Financial statements: Consolidated profit and loss account and statement of other comprehensive income 18 Company profit and loss account and statement of other comprehensive income 19 Consolidated balance sheet 20 Company balance sheet 21 Consolidated statement of changes in equity 22 Company statement of changes in equity 23 Consolidated statement of cash flows 24 Company statement of cash flows 25 Notes 26 - 52 Carbacid Investments plc Company information For the year ended 31st July 2018 Board of directors Amb D N O Awori Chairman J M Wanjigi B C Patel M K R Shah S O Mudhune Company secretary N P Kothari FCPS (Kenya) FCIS Audit & Risk committee S O Mudhune Chairperson B C Patel M K R Shah Registered office L.R. No. 1870/1/569 2nd Floor, Apollo Centre, Vale Close, Ring Road Parklands, Westlands P.O. Box 764 - 00606, Sarit Centre Nairobi, Kenya. Registrars and transfer office Axis Kenya 2nd Floor, Apollo Centre, Vale Close, Ring Road Parklands, Westlands P.O. Box 764 - 00606, Sarit Centre Nairobi, Kenya. Independent auditor RSM Eastern Africa Certified Public Accountants 1st Floor, Pacis Centre, Slip Road, off Waiyaki Way, Westlands P.O.
    [Show full text]
  • Table of Contents
    Weekly report - Week 35 Market Perfomance P revious T oday %Change Market Summary Shares traded 125,158,500 358,870,700 186.7% It was a mixed bag for the NSE Last week. After a very tumultuous week in the banking industry that Equity Turnover (KES) 2,670,283,939 6,726,668,014 151.9% saw banking stocks lose over 40bn on the market, Banks bounced back mainly due to investors who Market Cap (KES Bill) 1,944 1,931 -0.7% were keen to take advantage of the low entry levels for banks stocks. Most activity was seen on Market Cap (USD Mil) 19 19 -0.6% Safaricom where investors were rushing to lock in the ordinary and special dividend before book NSE-20 Share Index 3,217 3,188 -0.9% closure. Other counters that registered elevated activity were KCB Group, Equity bank and Co- NSE All Share Index 135 134 -0.7% 3,552 3,485 operative bank that witnessed activity mostly from investors that were taking advantage of the low NSE 25 Share Index -1.9% 91-day Treasury Bills 8.607 8.258 -4.1% banking valuations as well as investors fleeing to value. 182-day Treasury Bills 11.182 11.125 -0.5% All the main indices closed the week in the red.The Alsi, NSE 20 and NSE 25 shed 0.67%, 0.89% and 364-day Treasury Bills 11.982 11.502 -4.0% 1.87% respectively to close at 134.6, 3,187.87 and 3,485.42. Top Gainers & Losers Top gainers W eek Close w-o-w % Shares Traded Gainers Following news that Kuramo Capital had agreed to acquire about 25% percent of Transcentury’s Trans-Century Ltd 6.6 45.6% 52,500 Housing Finance Group Ltd 16.7 19.4% 312,300 shareholding in exchange for 2.0bn cash injection (a big premium on the price of Kes 4.50), NIC Bank Ltd 27.8 15.6% 486,900 Transcentury’s share prices soared 45.5% to close the week at Kes 6.60 from Kes 4.50 the previous Eveready East Africa Ltd 2.2 13.2% 14,200 Barclays Bank of Kenya Ltd 9.7 12.9% 5,925,700 Friday.
    [Show full text]
  • BOC GASES a Member of the Linde Group
    BOC GASES A Member of The Linde Group 2 Notice of annual general meeting 3 Directors, officers and administration 4 Board of directors 6 Report of the directors 7 Statement of directors' responsibilities 8 Chairman's report 10 Managing director's report 13 Corporate governance 16 Report of the independent auditors FINANCIAL STATEMENTS: 17 Income Statements and Statements of Comprehe Income 18 Statements of financial position 19 Statement of changes in equity of the Group 21 Statement of changes in equity of the Company 23 Statements of cash flows 24 Notes to the financial statements 63 Proxy Page BOC Kenya Limited Annual Report 2012 Notice of annual general meeting Notice is hereby given that the Seventy Second Annual General ARTICLE NUMBER 25A Meeting of BOC Kenya Limited will be held at the Company's "The provisions of the Central Depositories Act, 2000 (the Head Office on Kitui Road, Industrial Area, Nairobi, on Thursday "CD Act") as amended or modified from time to time shall 23 May 2013 at 11.00 am, for the following purposes: apply to the Company to the extent that any securities (as such term is defined in section 2(1) of the CD Act) ORDINARY BUSINESS of the Company are in part or in whole immobilised or (a) To receive and adopt the audited financial statements dematerialised or are required by the regulations or for the year ended 31 December 2012, together with the rules issued under the CD Act to be immobilised or directors and auditors' reports thereon. dematerialised in part or in whole, as the case may be.
    [Show full text]
  • Kenya Economic Review, & Cytonn Weekly #28/2017 Executive
    Kenya Economic Review, & Cytonn Weekly #28/2017 Disclaimer: The views expressed in this publication, are those of the writers where particulars are not warranted. This publication, which is in compliance with Section 2 of the Capital Markets Authority Act Cap 485A, is meant for general information only, and is not a warranty, representation, advice or solicitation of any nature. Readers are advised in all circumstances to seek the advice of a registered investment advisor. Executive Summary Fixed Income: During the week, T-bill subscriptions decreased to 33.6%, compared to 116.3% recorded the previous week due to reduced liquidity in the money market, which came in at net liquidity reduction of Kshs 1.1 bn. Yields on the 91, 182 and 364-day papers remained unchanged at 8.2%, 10.3% and 10.9%, respectively. Meanwhile, the Central Bank of Kenya (CBK) released the Quarterly Economic Review for the third quarter of the fiscal year 2016/2017, which revealed that the contribution of foreign commercial banks to Kenya’s external debt continues to increase; Equities: The equities market was on an upward trend with NASI, NSE 20 and NSE 25 gaining 0.6%, 1.1% and 0.9%, respectively, taking their YTD performance to 14.8%, 14.3% and 14.6% for NASI, NSE 20 and NSE 25, respectively. This week’s performance was attributed to gains in large cap stocks such as KCB Group and Equity Group, which gained 4.0% and 2.0%, respectively. The Capital Markets Authority (CMA) has approved the global depository receipts (GDRs) policy, which will allow Kenyan firms to
    [Show full text]