NBK shares fall as profits tumble and managers leave
An investor at the NSE. National Bank has lost 29.3 per cent of its value since last month. PHOTO | FILE
National Bank of Kenya stock has shed a third of its value after it slid into the red amidst the acrimonious sacking of its chief executive, ending at Sh9.20 Wednesday.
The mid-tier bank has lost 29.3 per cent of its value since last month to be the highest loser at the Nairobi bourse followed by troubled retailer Uchumi (21.6 per cent), loss-making car dealer Marshalls (19.2 per cent) and ad firm WPP-Scangroup down 17.9 per cent, according to Nairobi Securities Exchange data.
NBK reported an unprecedented Sh1.15 billion loss for the period ended December 2015 and a fortnight later sacked managing director Munir Sheikh Ahmed and two other executives.
Analysts at Cytonn said NBK’s poor run at the bourse was due to “poor full-year 2015 results” and “poor corporate governance that culminated in the sacking of the CEO.” It closed at Sh9.20 per share yesterday, having shed over 41 per cent since the beginning of the year.
Uchumi’s poor run at the NSE comes at a time the supermarket chain is facing a winding up petition triggered by mounting suppliers’ dues totalling Sh3.6 billion which has forced the firm to rely on short-term lending for working capital.
Uchumi’s counter Wednesday touched an all-time low of Sh3.90 per share and closed at Sh4.00 apiece.
Declining sales, loss of its flagship Peugeot franchise, and ownership wrangles have seen Marshalls plunge into loss-making.
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Note: The results are not exact but very close to the actual.
