Seven bank stocks touch one-year low at NSE trading
A Nairobi Securities Exchange staff monitors trading at the Exchange building. PHOTO | FILE
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Barclays, Diamond Trust Bank, Housing Finance, NIC, Standard Chartered and Co-operative Bank were all trading at a one-year low.
Seven banking counters at the Nairobi Securities Exchange (NSE) on Wednesday touched a one-year low as the market responded to the sudden closure of Imperial Bank leading to the indicative NSE 20 share index dropping to levels last seen in early 2011.
The index shed 102 points or 2.6 per cent to close at 3875 points with banking counters, except I&M Bank, being on the losing side.
“Investors continued to show concern over the banking sector leading seven banks to touch 52 week lows... I&M Bank was the only gainer in the sector, up 4.2 per cent,” said Standard Investment Bank in a note to investors.
Equity Bank was the highest mover in the market, trading 24,452,800 shares worth Sh978 million at an average price of Sh40 per unit. The banking sector is expected to start releasing financial results for the third quarter next week.
Investors however seem to be more concerned about the health of the sector following the placement of mid-sized Imperial Bank under statutory management.
The bank held at least Sh54 billion in deposits, according to the last audited accounts of last December.
On Wednesday the Central Bank of Kenya made efforts to calm a jittery market by stating that it was in control of the industry and was ready to provide adequate liquidity to banks to ensure stability.
“This incident does not present a systemic concern for the sector,” said the regulator.
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