Listed firms hit by slowing economy
SEE ALSO :Prelate thanks Pope for new job“Taking the foregoing into account… the company is expected to record a decline of more than 25 per cent in the net profit attributable to the shareholders of the company for the financial year ended December 31, 2019, as compared to that for the same period ending December 31, 2018.” The company said it had made attempts to put in place measures to cushion itself from the downturn through diversificatin of its business to include the Derivatives Market, implementation of the Ibuka Programme and other products. It added that the new products will make an impact on its profits next year. The NSE joins about 20 listed companies that have issued profit warnings this year while a number that already published their full-year results in June reported losses or a major drop in profit. The declining performance, attributed to various factors including low spending power among consumers and delayed payment of bills by goverment agencies, have seen thousands of employees lose their jobs. Among the companies that expect to report or have already published earnings substantially lower than last year’s include Kenya Power, Kenya Re, Sanlam, UAP, Eaagads, BOC Kenya and Standard Group.
SEE ALSO :Fears over TZ wildlife corridorActivity at the NSE can to some extent be taken to be a barometer of economic performance and it has been on the decline for the better part of this year. The NSE 20 share index, which is the mean for the 20 best performing counters at the exchange, has declined since January when it was at 2,983 points to 2,584 points in yesterday’s trading. The number of transactions declined 22 per cent to 208,073 between January and September this year, compared to 267,741 transactions over a similar period in 2018.
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