Foreign investors' bet on KCB dividend raises trade volume

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Investors were said to be looking at entering the counter which is expected to post huge profits following an earlier announcement by the Central Bank of Kenya of 16.9 per cent growth in the industry performance.
KCB is the largest lender in the country in terms of asset base, market share and profitability.

A foreign investor offloaded 17 million shares of Kenya Commercial Bank (KCB) valued at Sh743 million on Wednesday, the eve of the lender announcing its full year performance.

KCB was the top mover at the Nairobi Securities Exchange with 19,479,300 shares changing hands at an average of Sh43.75 per unit with the block trade bought by another foreign investor.

Investors were said to be looking at entering the counter which is expected to post huge profits following an earlier announcement by the Central Bank of Kenya of 16.9 per cent growth in the industry performance. KCB is the largest lender in the country in terms of asset base, market share and profitability.

“The counter’s liquidity and expected higher dividend payout makes it attracts attention from foreign investors. There were bids for even Sh45,” said Old Mutual’s research analyst, Geoffrey Maina.

Foreign investors have been positioning themselves in the Kenyan banking market with a block trade having been witnessed also on Equity Bank’s counter on Tuesday. Equity Bank and KCB, the two largest banks in the country will be releasing their full year performance on Thursday.

The market index closed 27.66 points higher at 4,903.48. Other major movers included Mumias Sugar which also had a block trade involving foreign investors.

The sugar company gained 4.8 per cent to close at Sh3.25 per unit, ahead of a decision on Kenya’s request for an extension of the Comesa sugar importation safeguards at a Heads of State and Government meeting being held in Kinshasa, the Democratic Republic of Congo.