The shares shed value at the beginning of the year due the expected dilution from the upcoming rights issue. The share has been rebounding past two trading days likely due to oversold conditions. Long-term outlook is positive but in the short-term hoping to buy some cheap at circa 10/10.50 shillings a share.
If I was a foreign investor looking for long-term growth, besides the insurance sector, energy companies like Kengen would be the way to go. Power generating company would be more attractive than distributing companies because of the risks involved and the prospects of another competitor entering the market after Parliament approved entry of competition in power distribution. Africa has a lot of potential for growth in energy due to the growing demand for power from industries being set-up and low homes power coverage.
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