BUSINESS

Kenol Kobil exit lifts Total Kenya stock

The exit of Kenol Kobil from the Nairobi Stock Exchange has reduced the choices investors have in the oil industry to one option, Total Kenya.

This, therefore, means that all other factors kept constant, the Total Kenya counter has a higher chance of attracting investments since there will be no competing counter in the industry.

Additionally, Total has been added to the NSE 20 share index. This means that it is now among the most watched counters internationally.

The counter has enjoyed improved interest by investors since Kenol stopped trading, Financial Times data stream shows.

For a company to be listed among the NSE 20 share index, it has to have a free float of at least 20 percent. It should also be a blue-chip company with high profitability and dividend record.

Total Kenya price share dropped by 6.62 percent by close of business on May 20, 2019.

Kenol Kobil lost its position at the NSE 20 share index after a French firm, Rubis Energie expressed its interest in buying out the company.

 

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