NYARUGENGE - Kenya Commercial Bank (KCB) group shares, started trading on the Rwanda Over the Counter (OTC) market yesterday, partly igniting the bank’s share rise on the Nairobi Stock Exchange (NSE).

The event marked the listing of the first equities stock in the market and the first cross-listing of any stock in the 18-months-old market.

James Musoni, Minister of Finance and Economic Planning launched the trading that saw KCB share opening at Rwf160 and closing at Rwf163 on its debut on the ROTC market.

"KCB has, by this cross-listing, shown its confidence in our financial sector and the growth of our economy thus giving our people the opportunity to buy its shares,” Musoni said before ringing the bell to inaugurate trading at Kigali Serena hotel. 

Market reports show that out of 50,000 shares offered for sale on the ROTC market, 42,800 shares were traded in 12 deals.

At the close of the session, KCB counter had 7,200 shares on offer at Rwf163 per share and 800 shares on bid at Rwf160.

Celestin Rwabukumba, Operations Manager of Capital Market Advisory Council (CMAC) said that the volume is bigger than the number of KCB shares traded on the Uganda Stock Exchange (USE) in the last six months.

"This is encouraging,” Rwabukumba said. 

By press time, Rwabukumba said KCB share on the NSE was continuously gaining, attributing the trend to the cross listing and other market conditions. 

Immediately after Musoni rang the bell, it was reported that KCB’s share on the Nairobi Stock Exchange (NSE) had jumped to Ksh22.78 (Rwf166) from Ksh20.27 (Rwf151).

KCB cross listing makes it the only listed company on the ROTC market which is predominantly characterised by debt securities.

Musoni said Rwanda’s economy has high growing demand for long term capital investments than the domestic capacity is able to support.

"The integration of regional capital markets will provide an avenue through which the economy will tap the regional capital markets,” the Minister added.

Oduor-Otieno, the bank’s group CEO said cross listing was very vital for the growth of Rwanda’s stock market.

"This is a very important occasion for us as we help open a new chapter for this country’s finance market.  We believe this will now provide investment opportunities to thousands of Rwandans willing to invest in the stock market since it now makes it convenient for them to invest in the company right here in Rwanda,” said Oduor-Otieno 

KCB’s cross listing in Rwanda comes barely seven months after it began operations in the country.  

Peter Muthoka, KCB Group Chairman said last year the bank posted Rwf42.7 billion profit before tax, 42 percent above the group’s performance in 2007 which enabled the board to pay a dividend of about Rwf7 for every ordinary share.

The bank has had its shares cross listed in Uganda and Tanzania.

Musoni hoped that private companies in Rwanda would follow suit and put their shares on the ROTC market.

Ends