Bank stocks dominate trade with Sh276.9m turnover

Banks stocks continued dominating trading at the Nairobi Securities Exchange (NSE) Monday as the market opened the week on a positive note, gaining 13 points to close at 3187 points.

The bank shares saw a trading turnover of Sh276.9 million, accounting for two thirds of the market’s total traded turnover of Sh412.4 million.

The blue chip banking stocks of Equity, KCB and Barclays Kenya were the main movers in the segment, with KCB closing at a five-year low after falling to Sh25.25 a share.

“The banking sector had 9.8 million shares traded and represented 60 per cent of the day’s traded volume. Equity Holdings was the day’s biggest mover with five million shares changing hands at between Sh26.75 and Sh27.50.

“KCB Group closed 1.94 per cent lower at Sh25.25 on a volume of three million shares. Barclays Bank moved 1.1 million shares and closed at Sh8.05,” said the NSE in its daily market report.

Other significantly traded stocks Monday included KenGen, which had 2.3 million shares changing hands at an average of Sh6.60, Kenya Airways that traded 1.16 million shares at an average of Sh3.90 and Safaricom that sold 1.12 million shares at Sh19.50.

The stock market, even with the 13 point gain, was still holding below the 3,200 points level for the fifth straight session.

Analysts at Faida Investment Bank say there should be continued price stability for majority of counters, with Safaricom likely to experience lower supply hence possible price gains as the effects of the post-book closure selloffs subside.

On the other hand, the analysts say that EABL will likely see more sell side activity due to profit taking activities, while bank stocks are expected to experience volatility in prices.