Trading of KCB Group #ticker:KCB and National Bank of Kenya (NBK) #ticker:NBK shares was halted Thursday morning ahead of undisclosed major announcement.
A statement from the Nairobi Securities Exchange (NSE) #ticker:NSE confirmed the temporary stoppage of trading on the two counters.
“NSE wishes to inform investors, shareholders and the general public that we have halted trading of KCB and NBK shares as we await material disclosure from NBK affecting the two counters,” NSE said in a statement.
Linked to buyout
NBK, which has been linked to buyout by KCB since 2017, is facing capital constraints with the National Treasury’s promise to pump in more money having delayed to close to a year now.
The halt is in line with clause 9.4.2(II) of NSE Equity trading rules.
The clause states that NSE may temporarily halt trading in one or more securities prior to obtaining a clarification from a company on a report regarding the company which has been brought to the attention of the bourse.
In addition, the halt can be effected when there are “unusual market movements in price or volume of a security.”