The Banking Sector dominated the trading at the Nairobi Securities Exchange (NSE). This comes after it had shares worth KSh464 million transacted. This, therefore, accounted for 41.31% of the traded value when the bourse closed yesterday.
Equity Group Holdings actively moved 7 million shares valued at KSh366.5 million at between KSh51.25 and KSh 52.25. KCB Group down 25 cents to KSh.50.75, moved 1.38 million shares valued at KSh70 million. I&M Holdings moved 232,000 shares worth KSh.11.6 million and closed at KSh50.
Boosted by the sale of Safaricom and Equity Group Holdings shares, turnover at the Nairobi bourse soared to KSh1.1 billion yesterday from KSh.464 million.
According to Fitch Ratings- an international credit rating agency based out of New York City and London, credit growth is stronger among Kenya’s biggest banks, which are adequately capitalized, well-funded, and profitable.
While the sector’s asset quality has worsened, with the ratio of non-performing loans (NPL) to total loans reaching 12.9% as of April 2019, according to CBK, the NPL ratio has since fallen slightly and will be further helped by increasing credit growth. This follows repeal of the rate cap law, which had led to credit rationing.
When the NSE closed yesterday, the number of shares traded stood at 27.1 million against 14 million posted on Monday.
The NSE 20 share Index was down 8.61 points to stand at 2600.17. All Share Index NASI picked up 0.16 points to stand at 160.15. The NSE 25 Share index was up 1.77 points to settle at 3940.20.
Safaricom was the day’s biggest mover with 15 million shares valued at KSh454 million changing hands at between KSh29.80 and KSh30.25. This represented 40.47% of the day’s traded value.
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