The Banking sector retreated at the Nairobi Securities Exchange (NSE) trading floor on March 19, even as the bourse recorded a slide to Ksh957 million.
Previously, the NSE had posted Ksh966 million on the back of the performance from the banking sector that had traded shares worth Ksh547 million.
Monday’s trading had seen banks record 56.61% of the day’s total turnover. This seemed to be a reaction to the High Court ruling that termed the interest cap unconstitutional. Investors seem optimistic that the freeze on the interest cap will allow banks to offer more loans and in turn perform well at the bourse.
With the Consumers Federation of Kenya (COFEK) having lodged an appeal against the ruling, it seems the banking sector’s trading could be normalising. On Tuesday, it’s share in overall trading had dipped to 30.73% on shares worth Ksh294 million.
The decline in turnover was also followed by a slump at the indices counter, as all indicators shed off points.
- The NSE 20 share Index dropped 11.36 points to stand at 2892.44.
- All Share Index NASI shed 1.22 points to settle at 158.93.
- The NSE 25 Share index was down 14.35 points to stand at 3957.62.
The Bond market on the other hand registered improved activity with bonds worth Ksh3.4 billion transacted compared to Ksh2.6 billion posted the previous session.
9.42% – decline in stock of Kenya Re after it announced a profit warning where it expects net earnings to drop by over 25%
Trading the largest volume for the day was Safaricom, who exchanged 19 million shares. Kenya Re, who have issued a profit warning that they expect over 25% decrease in net earnings were also among the day’s top movers. Others were KCB Group, Equity Group and Barclays Bank.
The days biggest gainers were I&M Holdings, Bamburi Cement, Total Kenya, BOC Kenya and Uganda’s Umeme.
Kenya Re, Eagads, Mumias Sugar, Stanbic Holdings and Kengen were among the day’s biggest decliners.
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