Market edgy with bank profits coming in lower

The Banking counters at the Nairobi Securities Exchange look to deliver dismal profits as the lenders maintain a straight face and keep dividends unchanged.

The first two lenders to release their results for the full year under rate caps have given a glimpse of what to expect as the lenders posted a decline in profits.

Barclays Bank posted a Sh6.9 billion in net profits over 2017, the first full year under rate caps. This was 6.4 percent lower than the net profits posted in 2016 at sh7.3 billion.

A final dividend of KES 0.80 has been declared, which combined with the interim dividend of Sh0.20, make a total dividend for FY17 at Sh1.00 (unchanged from FY16).

Stanbic Bank saw its profits decline 1.9 percent from Sh4.4 billion last year to Sh4.3 billion in 2016.

Management declared a final dividend of Sh4.00 with book closure on 13 June 2018. Added to an earlier interim dividend of Sh1.25, makes for a full dividend of KES 5.25 – unchanged from FY16.

The market seemed cagey on Monday with the banking sectors only accounting for 24 percent of the days traded volumes with shares worth Sh229 million.

Equity Group Holdings actively moved 3.5 million shares valued at Sh168 million at between Sh46.00 and Sh47.50 while KCB Group went up twenty-five cents to Sh48.00 moving 352,000 shares valued at Sh16.9M.

Kenol Kobil continued the mysterious dominance in the market counters pushing up the energy sector that contributed to over half of yesterday’s trading.

A series of events at oil firm KenolKobil over the past one year has fueled speculation that the oil firm could be grooming itself for another takeover bid by a new suitor. It is not clear who the suitor is since the planned takeover of KenolKobil by Puma Energy, the Switzerland conglomerate, collapsed in March 2013, after employees moved to court to oppose the move.

KenolKobil moved 31.9 million shares valued at Sh520M changing hands at between Sh16.30 and Sh16.95.

Safaricom had 4.3 million shares valued at Sh128 million transacted at between Sh29.00 and Sh29.75; this represented 13.45 percent of the day’s traded value.



The NSE 20 Share Index was down 29.21 points to stand at 3726.74.

All Share Index (NASI) shed 0.35 points to stand at 180.91.

The NSE 25 Share Index was up 1.43 points to stand at 4589.05.

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