NAIROBI - Kenya Commercial Bank Ltd, the East African nation’s biggest lender by assets and outlets, fell in Nairobi trading on a dim outlook for the financial industry, an analyst said. The shares retreated 0.8 shillings, or 3.5 percent, to 20.75 shillings at 9:43 a.m. local time, extending their decline this year to 8.5 percent.
NAIROBI - Kenya Commercial Bank Ltd, the East African nation’s biggest lender by assets and outlets, fell in Nairobi trading on a dim outlook for the financial industry, an analyst said.
The shares retreated 0.8 shillings, or 3.5 percent, to 20.75 shillings at 9:43 a.m. local time, extending their decline this year to 8.5 percent.
Recently, the lender announced it would open seven outlets in Rwanda this year.
"It takes time before branches break even” Eric Musau, a research analyst at Renaissance Capital Ltd. in Nairobi, said in a telephone interview.
The economy is not growing as much as expected and the financial industry has been negatively impacted, he said. "Kenya remains the bread and butter of the company, so if Kenya is shaky, the outlook is not good.”
Kenya’s price-weighted All-Share Index climbed 0.03, or 0.1 percent to 55.80 points at 10:26 a.m. in Nairobi, after retreating for four days.
The shares of 15 companies gained, 5 declined and 35 were unchanged. The following were among the most active stocks on the Nairobi Stock Exchange today.
Barclays Bank of Kenya Ltd. (BCBL KN), the country’s largest lender by market value, declined 1.6 percent to 46.25 shillings on concerns its bad loans my rise.
"There has been market concern about their level of provisioning,” Eric Musau, a research analyst at Renaissance Capital Ltd. in Nairobi, said in a telephone interview today. "This is hanging over the stock and people are cautious.”
Kenya Airways Ltd. (KNAL KN), sub-Saharan Africa’s third- biggest carrier, rose 1.1 percent to 23.75 shillings after it added flights to Gaborone, the Botswanan capital and Ndola, a Zambian town in the copper belt, last week.
"They have decided to go to southern Africa seriously and it is attracting a lot of interest from passengers,” Fred Mweni, managing director of Nairobi-based Tsavo Securities Ltd., said in a telephone interview.
Kenya Electricity Generating Co. (KEGC KN), the biggest electricity producer in the country, advanced 3.7 percent to 12.75 shillings two days after it begun selling 15 billion shillings ($197.39 million) bonds with an option to raise a further 10 billion shillings if demand exceeds supply.
"This thing is really causing a lot of interest -- shareholders know it is going to be a success,” Mweni said.
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