Stock brokers register mixed results from market activity

By WINSLEY Masese

KENYA: A number of stock brokerage firms reported improved performance last year compared to 2012, largely due to increased activity at the Nairobi Securities Exchange (NSE).

Notable is Safaricom whose share price hit an all-time price peak of Sh11 in a trading session dominated by foreign investor sale.

The healthy performance pushed the blue chip NSE20-share index to a new five-year high of 5,085.83 points above the 5047 points peak of July 28, 2008.

However, established brokerage firms such as Dyer and Blair, and Suntra registered reduced performance.

For instance, though Suntra Investments Ltd saw its brokerage commission improve from Sh41 million in 2012 to Sh46 million in 2013, it reported a drop in its profit after tax to Sh10 million in 2013 compared to Sh13 million in 2012 to Sh10 million in 2013.

 However, total income grew marginally by Sh23,000. Dyer and Blair Investment Bank Ltd reported a slump in its profit after tax, reporting Sh21 million in 2013 compared to Sh114 million in 2012.

The bullish market was favourable to investment banks such as Faida, and ABC Capital Ltd, according to trading results reported by the firms yesterday.

Faida Investment Bank Ltd saw its profit after tax increase from Sh3.2 million in 2012 to record a high of Sh11.6 million, a 267 per cent improvement.

Its brokerage commission increased from Sh126 million in 2012 to Sh205 million in 2013. However, its total expenses increased from Sh141 million in 2012 to stand at Sh183 million in 2013, biting heavily into its profits. ABC Capital Ltd recorded improvement in total income, moving from Sh6.3 million in 2012 to Sh9.5 million in 2013.

Its brokerage commission grew to Sh16 million in 2013, down from Sh6 million in the previous period under review.