Kenya Airways emerges as prime gainer on Nairobi Securities Exchange a day after 5-year suspension is lifted

Kenya Airways emerges as prime gainer on Nairobi Securities Exchange a day after 5-year suspension is lifted

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Kenya Airways (KQ) shares have surged a day after the nationwide service was admitted to the Nairobi Securities Exchange (NSE) following a five-year freeze.

Data from the Nairobi bourse on Wednesday, January 8, 2025, positioned KQ shares on prime of the chart, recording a 9.93 per cent soar.

NSE defined that every KQ safety traded at Ksh4.33 beforehand earlier than recording a Ksh0.43 soar to a sale at Ksh4.76 on Wednesday, January 8, 2025.

The upswing was much better than the constructive achieve recorded by Kenya Power, Olympia, Britam and Sameer within the Nairobi Securities Exchange.

Before the suspension was imposed in July 2020, KQ shares traded at 3.83 per share on the Nairobi Securities Exchange.

However, the most recent information signalled a swelling demand for KQ securities only a day after incomes its admission to the Nairobi bourse. This was primarily attributed to its return to profitability.

In the yr ending December 2023, Kenya Airways recorded an working revenue of Ksh10.5 billion, the primary since 2017. The important achieve was excessive in comparison with an working lack of Ksh5.6 billion in 2022.

In the Nairobi bourse chart, solely Kenya Power (Ksh6.98) and Britam (7.06) had been among the many prime every day gainers whose shares had been pricey in comparison with KQ’s.

Lifting of Suspension

The nationwide service was readmitted to NSE on Monday, January 6, 2025, after returning to profitability. Besides the revenue margins, NSE attributed its resolution to the withdrawal of the National Aviation Management Bill 2020 which sought to provide powers to the nationwide service to realign its operations with the help of the government.

“Notice is hereby given of the lifting of the suspension within the buying and selling of Kenya Airways Pic securities, efficient January 5, 2025.

“The suspension on the trading of Kenya Airways PLC shares was lifted following the company’s recent performance which saw the company record a profit after tax and the withdrawal of the National Aviation Management Bill 2020,” NSE introduced.

Its readmission was additionally okayed by the Capital Markets Authority (CMA).

The suspension was imposed after KQ nearly sank into insolvency which was occasioned by massive losses and debts.

A gathering by stakeholders and Capital Markets Authority really useful the suspension of the shares as most buyers shied away from the airline securities whose future was not clear again in 2020.

Kenya Airways emerged as the highest gainer of the day, posting a formidable 9.93% enhance to shut at Kes. 4.76. Other firms that featured among the many day’s prime gainers embody:

Kenya Power and Lighting Company
Olympia Capital
Britam
Sameer Africa PLC@BritamEA… pic.twitter.com/WtwCxJPfxL

— NSE PLC (@NSE_PLC) January 8, 2025