Kenya Power stock up 23pc to Ksh3.8 billion in a week

The value of Kenya Power’s stock has risen by 23 per cent this past week sending the company’s market valuation at the Nairobi Securities Exchange (NSE) to Ksh.3.84 billion.

This from Ksh.3.12 billion previously representing a Ksh.720 million market capitalization gain in just four days of trading in the just completed week.

Kenya Power’s share price closed the week at Ksh.1.97 on Friday from Ksh.1.60 a week ago.

The rise of the utility’s company stock is partly attributable to investor interest drawn from recent shareholding disclosures.

Last week, data from the Capital Markets Authority (CMA) revealed Kiharu MP Ndidi Nyoro had tripled his ownership in the company to become the largest individual shareholder.

The disclosure spooked new interest from local investors in the company to drive up the mini-meteoric rise in Kenya Power shares.

Of the four trading days, Kenya Power was the biggest gainer on Monday, Wednesday and Thursday while the stock was among the most traded across the week.

In a Facebook post, Ndidi Nyoro, who formerly ran a stock brokerage business said Kenya Power share price was ‘probably undervalued’ given its status as a penny stock (dirty cheap).

Curious market participants have however described Kenya Power as a meme stock given its rise is largely not backed by fundamentals.

Meme stocks, a common phrase in the US has been used to describe companies with ‘abnormal’ share price gains including the now infamous GameStop and Bed Bath & Beyond.

While Kenya Power’s share price has been on a tear, the NSE has been on a decline across the same week following its previous bounds which tied to the conclusion of the electioneering period.

NSE market cap contracted by 6.6 per cent in the week to Ksh.2.062 trillion with the NSE All Share Index (NASI) shedding 9.3 points to close the week at 132.24 points.