Market News

Co-operative up 13pc in bank counters rally

A Co-operative banking hall. FILE PHOTO | NMG
A Co-operative banking hall. FILE PHOTO | NMG 

Most bank stocks ended the week in the positive territory with Co-operative Bank surging 13.25 per cent following announcement of the annual results. Equity Bank rose 6.48 per cent while KCB was up 1.69 per cent despite returning flat results.

In all, six bank counters were in the positive zone while four were in the red and one, National Bank, remained unchanged.

Co-op Bank managed an 8.2 per cent growth in earnings to become the fastest growing large bank—besides a 80 cent dividend per share and a 1:5 bonus—as Equity profit dropped 4.1 per cent.

KCB growth was less than one per cent as all major banks took a hit from South Sudanese economy that has been ravaged by hyper-inflation.

Barclays stock lost 3.31 per cent despite maintaining a healthy dividend, while NIC Bank fared worst with a 7.14 per cent contraction over the week following a 3.4 per cent decline in profit. Standard Chartered, yet to release its results, lost 1.46 per cent.

Most banks have claimed the largely poor results arise from the rate capping that only affected one-quarter of the reporting year. However, most have cranked up bad debt that would normally come down if the rate cap was that effective.

Overall, the market ended up with NSE 20 share index 20 per cent at 2983.63. Safaricom was a major market lever rising 6.21 per cent to 17.95. Kakuzi was one of the largest risers at 10.33 per cent ending at Sh299.

On the losing side was Express Kenya, which slumped 16 per cent to end up at Sh2.70. Mumias Sugar fell 9.52 per cent to Sh0.95.