BUSINESSSTOCKS

Foreign Investors Scramble for Banking Stocks, Zeroing in on Equity Group

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banking stocks at NSE
Equity Group led the foreign investors interest.
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Foreign and local investors are keenly watching how Absa Bank Kenya, Diamond Trust Bank and StanChart Bank earnings will turn out this week. Foreign investors remained bullish last week, with net inflows of US$ 2.5 Million. Their participation at the NSE trading activity rose to 34.1% compared to 9.1% the prior week

According to data from Standard Investment Bank(SIB), Equity Group, BK Group, ABSA Bank Kenya and Co-op Bank were among counters that attracted massive foreign net inflows while KCB Group was among those counters that had large foreign investors selling out, after the lender declared a historic dividend payout.

Equity Group led the foreign investors interest while KCB was the main target for foreign investors selling to cash in on the fat dividend payouts. Equity Group attracted net foreign inflows of US$ 3.5 Million while KCB posted net foreign outflows of US$ 360,000.

Equity Group dominated market activity at the NSE last week, accounting for 26.5% of the week’s turnover. Likewise, KCB and ABSA share price rose by 11.7% and 0.5% week-on week to KSh 54.00 and KSh 19.95 respectively. Other top movers were Safaricom and EABL.

> Banks Impressive Earnings Fire Up Activity at the NSE

When trading closed on Friday last week, ABSA Bank Kenya share price rose marginally by o.5% week-on-week to KSh 19.95. The counter also saw its market capitalization hit US$ 834 Million.

At the close of trading last week, Equity Group and KCB Group were among the top movers at the Nairobi Securities Exchange(NSE) with Equity share price rising 3.8% week-on week to KSh 54.50, with a market capitalization standing at US$ 1.59 billion. The Group’s turnover hit US$ 4.69 Million, attracting foreign inflows of US$3.48million.

KCB posted a turnover of US$ 3.1 Million at the close of the week while its market capitalization reached US$ 1.34 billion. The counter’s week-on week share price was up 11.7% to KSh 54.00, the highest gain for a banking stock.

Safaricom shares price increased 2.5% week on-week to KSh 29.60 while EABL dropped o.5% week-on week to KSh 207.00

Written by
JACKSON OKOTH -

Jackson Okoth writes for Business Today. He can be reached on email at [email protected]

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