Quickmart Plc has attracted huge number of speculative traders, who are keen to ride on any price gains when the counter begins trading Thursday at the Nairobi Securities Exchange(NSE).
This follows reasonably informed prediction that the Quickmart counter will behave like that of Family Bank, which opened at KSh 18 and peaked to KSh 51 on its debut.
Given the shareholding structure of Quickmart, the free float might be thin and this implies volatility. However, this is assuming that institutional investors hold, do not sell or supply aggressively.
Those interested in Quickmart are advised to exploit market weakness and not market excitement by using price dips and periods of market weakness to accumulate. Speculative positions should not exceed 10% of one’s total portfolio.
Quickmart’s scrutiny by parliament follows its IPO which attracted KSh 18.41 billion in applications against KSh 15 billion target.
The counter has been assigned a symbol QMRT with a ticker code QMRT.00000 and ISIN: KE9940001986.
For sophisticated traders, Quickmart offers an opportunity to engage in momentum trading.
Momentum trading is buying into a share after the market has started responding to a positive story or catalyst.
Unlike early positioning, where we try to identify an opportunity before the market notices it, momentum trading involves entering after the price has started moving up.
