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    Why Ruto May Not Be Sworn in Even if He Wins

    READ: Did you know that the law now recognises Intersex children?

    Breaking: Judiciary fund operationalised 12 years later

    Rwandan’s in Diaspora Deposit Sh926 million

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    List of LG products that can be controlled and monitored via a mobile App

    Jiji Kenya Bags Two Awards on Safety and Classifieds Categories

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    Why IEBC Didn’t Print Special Ballot Papers for the Visually Impaired

    Why IEBC Didn’t Print Special Ballot Papers for the Visually Impaired

    Business Tycoon Eyeing MP Seat Caught Up  in Sh300m fraud Case

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    LG unveils 2022 Side-by-Side and Top Freezers Refrigerator Lineup

    LG unveils 2022 Side-by-Side and Top Freezers Refrigerator Lineup

    NCBA launches Sh 2B Electric Vehicle finance deal for customers

    NCBA launches Sh 2B Electric Vehicle finance deal for customers

  • Markets
    Rwandan’s in Diaspora Deposit Sh926 million

    Rwandan’s in Diaspora Deposit Sh926 million

    LG unveils 2022 Side-by-Side and Top Freezers Refrigerator Lineup

    LG unveils 2022 Side-by-Side and Top Freezers Refrigerator Lineup

    Mdundo hits 20 million active users across Africa 

    Mdundo hits 20 million active users across Africa 

    NCBA launches Sh 2B Electric Vehicle finance deal for customers

    NCBA launches Sh 2B Electric Vehicle finance deal for customers

    Agilitee Unveils Electric Car to Retail at  Sh1.1Million

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    More Than a Million Children to Benefit From Sh3.1 billion Program

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    BrighterMonday Bags Top E-recruitment Portal of the Year Award 2022

    BrighterMonday Bags Top E-recruitment Portal of the Year Award 2022

    Anti-Counterfeit Authority Names Dr. Mbugua Njoroge as CEO

    Anti-Counterfeit Authority Names Dr. Mbugua Njoroge as CEO

    Technology Sector Partners Launch Digital Talent Program

    Technology Sector Partners Launch Digital Talent Program

  • Real Estate
    Fanaka Real Estate Unveils Foundation to Support Charity Programs

    Fanaka Real Estate Unveils Foundation to Support Charity Programs

    HFC launches Ultimate Banking for Customers in Kenya and Diaspora

    HFC launches Ultimate Banking for Customers in Kenya and Diaspora

    Centum Re Debt Status Analysis As Of 30th September 2021

    Centum Real Estate Posts Sh650M Operating Profit For The Year Ended 31st March 2022

    centum

    How the students have benefited from Centum PLC

    National Construction Authority Suspends Licences of 18 Contractors

    National Construction Authority Suspends Licences of 18 Contractors

    CCI Global, Gateway Real Estate Africa start Construction of new Contact Centre in Kenya

    CCI Global, Gateway Real Estate Africa start Construction of new Contact Centre in Kenya

    NEMA Re-Introduces Another Tax for Developers

    NEMA Re-Introduces Another Tax for Developers

    Centum Digitalizes Real Estate Sector

    Centum Digitalizes Real Estate Sector

    Superior Homes Launches Reward Program for Investors

    Superior Homes Launches Reward Program for Investors

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    Demand for Foldable Smartphones Projected to Increase in 2022

    Demand for Foldable Smartphones Projected to Increase in 2022

    NCBA launches Sh 2B Electric Vehicle finance deal for customers

    NCBA launches Sh 2B Electric Vehicle finance deal for customers

    BrighterMonday Bags Top E-recruitment Portal of the Year Award 2022

    BrighterMonday Bags Top E-recruitment Portal of the Year Award 2022

    Samsung Unveils New Foldable Devices

    Samsung Unveils New Foldable Devices

    Samsung Unveils 2022 Electronics Line-Up Packed With New Innovations

    Samsung Unveils 2022 Electronics Line-Up Packed With New Innovations

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    Gadgets: Immerse Yourself into The Amazing LG Home Audio Systems

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    OPPO Find X5: Futuristic Technology Meets Ultra-Modern Design

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    TikTok Moves to Tame Misinformation Ahead Of August Polls

    Nokia Adds more Devices to its 2022 Gadget Potfolio

    Nokia Adds more Devices to its 2022 Gadget Potfolio

  • World Business
    Kenyan Lands Ksh 2.6 Trillion Construction Project in Saudi Arabia

    Kenyan Lands Ksh 2.6 Trillion Construction Project in Saudi Arabia

    Former Japanese prime minister Shinzo Abe has been shot

    Former Japanese prime minister Shinzo Abe has been shot

    The World Bank to create a pandemic prevention fund

    The World Bank to create a pandemic prevention fund

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    Why Mercedes Benz is Recalling Their Old Models

    Cold comfort awaits a springtime Davos

    Cold comfort awaits a springtime Davos

    Meet The Richest Man Who Can Fund Kenya’s Budget Alone for 10years

    Meet The Richest Man Who Can Fund Kenya’s Budget Alone for 10years

    EA Sports End 29 Years of Video Game Partnership With FIFA

    EA Sports End 29 Years of Video Game Partnership With FIFA

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    Central African Republic Adopts Bitcoin as an Official Currency

    Netflix Stock Collapses After Losing 200,000 Subscribers

    Netflix Stock Collapses After Losing 200,000 Subscribers

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    KenGen: How Dams Prevent Flooding – A Tale Of The Seven Forks Dam Cascade

    KenGen: How Dams Prevent Flooding – A Tale Of The Seven Forks Dam Cascade

    KBL Invests Sh76 Million In A National Consumer Promotion

    KBL Invests Sh76 Million In A National Consumer Promotion

    ‘Jua Kali’ Traders Equipped on How to Access to Global Markets

    ‘Jua Kali’ Traders Equipped on How to Access to Global Markets

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    CIC Insurance Profits Rise 38 Percent to Sh464

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    Kenyan Consumers to enjoy 20-minute delivery from Jumia Food

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    BURN Cookstoves Awarded ISO 9001:2015 Certification for High-Quality Standards  

    General Insurers pay claims worth Sh16.85Bn in three months

    General Insurers pay claims worth Sh16.85Bn in three months

    Agilitee Unveils Electric Car to Retail at  Sh1.1Million

    Agilitee Unveils Electric Car to Retail at Sh1.1Million

    • Agribusiness
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      Britam settles on veteran Tom Gitogo as CEO

      Britam settles on veteran Tom Gitogo as CEO

      I&M Bank Launches Single Regional Account and Real-Time Payments Platform

      I&M Bank Launches Single Regional Account and Real-Time Payments Platform

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      CIC Insurance Profits Rise 38 Percent to Sh464

      CIC Insurance Profits Rise 38 Percent to Sh464

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      Faulu Revamps of its Trade Finance Solutions

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      Zamara Feted as the Overall Best Insurance Broker of the Year

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      Is KRA to Blame For Deaths Caused By Illicit Brews?

      Is KRA to Blame For Deaths Caused By Illicit Brews?

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      Opinion: Deploying contemporary Information Technology solutions for Academic Delivery

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      Why Kenyan Economy is headed Pakistan direction

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      OPINION: Africa’s War to Secure the Internet  

      Prioritize long-term energy cost reduction for sustained industry growth

      Prioritize long-term energy cost reduction for sustained industry growth

Kenyan Business Feed
  • Home
  • News
    Why Ruto May Not Be Sworn in Even if He Wins

    Why Ruto May Not Be Sworn in Even if He Wins

    READ: Did you know that the law now recognises Intersex children?

    Breaking: Judiciary fund operationalised 12 years later

    Rwandan’s in Diaspora Deposit Sh926 million

    Rwandan’s in Diaspora Deposit Sh926 million

    List of LG products that can be controlled and monitored via a mobile App

    Jiji Kenya Bags Two Awards on Safety and Classifieds Categories

    Jiji Kenya Bags Two Awards on Safety and Classifieds Categories

    Why IEBC Didn’t Print Special Ballot Papers for the Visually Impaired

    Why IEBC Didn’t Print Special Ballot Papers for the Visually Impaired

    Business Tycoon Eyeing MP Seat Caught Up  in Sh300m fraud Case

    Business Tycoon Eyeing MP Seat Caught Up in Sh300m fraud Case

    LG unveils 2022 Side-by-Side and Top Freezers Refrigerator Lineup

    LG unveils 2022 Side-by-Side and Top Freezers Refrigerator Lineup

    NCBA launches Sh 2B Electric Vehicle finance deal for customers

    NCBA launches Sh 2B Electric Vehicle finance deal for customers

  • Markets
    Rwandan’s in Diaspora Deposit Sh926 million

    Rwandan’s in Diaspora Deposit Sh926 million

    LG unveils 2022 Side-by-Side and Top Freezers Refrigerator Lineup

    LG unveils 2022 Side-by-Side and Top Freezers Refrigerator Lineup

    Mdundo hits 20 million active users across Africa 

    Mdundo hits 20 million active users across Africa 

    NCBA launches Sh 2B Electric Vehicle finance deal for customers

    NCBA launches Sh 2B Electric Vehicle finance deal for customers

    Agilitee Unveils Electric Car to Retail at  Sh1.1Million

    Agilitee Unveils Electric Car to Retail at Sh1.1Million

    More Than a Million Children to Benefit From Sh3.1 billion Program

    More Than a Million Children to Benefit From Sh3.1 billion Program

    BrighterMonday Bags Top E-recruitment Portal of the Year Award 2022

    BrighterMonday Bags Top E-recruitment Portal of the Year Award 2022

    Anti-Counterfeit Authority Names Dr. Mbugua Njoroge as CEO

    Anti-Counterfeit Authority Names Dr. Mbugua Njoroge as CEO

    Technology Sector Partners Launch Digital Talent Program

    Technology Sector Partners Launch Digital Talent Program

  • Real Estate
    Fanaka Real Estate Unveils Foundation to Support Charity Programs

    Fanaka Real Estate Unveils Foundation to Support Charity Programs

    HFC launches Ultimate Banking for Customers in Kenya and Diaspora

    HFC launches Ultimate Banking for Customers in Kenya and Diaspora

    Centum Re Debt Status Analysis As Of 30th September 2021

    Centum Real Estate Posts Sh650M Operating Profit For The Year Ended 31st March 2022

    centum

    How the students have benefited from Centum PLC

    National Construction Authority Suspends Licences of 18 Contractors

    National Construction Authority Suspends Licences of 18 Contractors

    CCI Global, Gateway Real Estate Africa start Construction of new Contact Centre in Kenya

    CCI Global, Gateway Real Estate Africa start Construction of new Contact Centre in Kenya

    NEMA Re-Introduces Another Tax for Developers

    NEMA Re-Introduces Another Tax for Developers

    Centum Digitalizes Real Estate Sector

    Centum Digitalizes Real Estate Sector

    Superior Homes Launches Reward Program for Investors

    Superior Homes Launches Reward Program for Investors

  • Tech
    Demand for Foldable Smartphones Projected to Increase in 2022

    Demand for Foldable Smartphones Projected to Increase in 2022

    NCBA launches Sh 2B Electric Vehicle finance deal for customers

    NCBA launches Sh 2B Electric Vehicle finance deal for customers

    BrighterMonday Bags Top E-recruitment Portal of the Year Award 2022

    BrighterMonday Bags Top E-recruitment Portal of the Year Award 2022

    Samsung Unveils New Foldable Devices

    Samsung Unveils New Foldable Devices

    Samsung Unveils 2022 Electronics Line-Up Packed With New Innovations

    Samsung Unveils 2022 Electronics Line-Up Packed With New Innovations

    Gadgets: Immerse Yourself into The Amazing LG Home Audio Systems

    Gadgets: Immerse Yourself into The Amazing LG Home Audio Systems

    OPPO Find X5: Futuristic Technology Meets Ultra-Modern Design

    OPPO Find X5: Futuristic Technology Meets Ultra-Modern Design

    TikTok Moves to Tame Misinformation Ahead Of August Polls

    TikTok Moves to Tame Misinformation Ahead Of August Polls

    Nokia Adds more Devices to its 2022 Gadget Potfolio

    Nokia Adds more Devices to its 2022 Gadget Potfolio

  • World Business
    Kenyan Lands Ksh 2.6 Trillion Construction Project in Saudi Arabia

    Kenyan Lands Ksh 2.6 Trillion Construction Project in Saudi Arabia

    Former Japanese prime minister Shinzo Abe has been shot

    Former Japanese prime minister Shinzo Abe has been shot

    The World Bank to create a pandemic prevention fund

    The World Bank to create a pandemic prevention fund

    Why Mercedes Benz is Recalling Their Old Models

    Why Mercedes Benz is Recalling Their Old Models

    Cold comfort awaits a springtime Davos

    Cold comfort awaits a springtime Davos

    Meet The Richest Man Who Can Fund Kenya’s Budget Alone for 10years

    Meet The Richest Man Who Can Fund Kenya’s Budget Alone for 10years

    EA Sports End 29 Years of Video Game Partnership With FIFA

    EA Sports End 29 Years of Video Game Partnership With FIFA

    Central African Republic Adopts Bitcoin as an Official Currency

    Central African Republic Adopts Bitcoin as an Official Currency

    Netflix Stock Collapses After Losing 200,000 Subscribers

    Netflix Stock Collapses After Losing 200,000 Subscribers

  • KBF
    • All
    • Agribusiness
    • Banking
    • Insurance
    • Manufacturing
    • Opinion
    KenGen: How Dams Prevent Flooding – A Tale Of The Seven Forks Dam Cascade

    KenGen: How Dams Prevent Flooding – A Tale Of The Seven Forks Dam Cascade

    KBL Invests Sh76 Million In A National Consumer Promotion

    KBL Invests Sh76 Million In A National Consumer Promotion

    ‘Jua Kali’ Traders Equipped on How to Access to Global Markets

    ‘Jua Kali’ Traders Equipped on How to Access to Global Markets

    CIC Insurance Profits Rise 38 Percent to Sh464

    CIC Insurance Profits Rise 38 Percent to Sh464

    LG unveils 2022 Side-by-Side and Top Freezers Refrigerator Lineup

    LG unveils 2022 Side-by-Side and Top Freezers Refrigerator Lineup

    Kenyan Consumers to enjoy 20-minute delivery from Jumia Food

    Kenyan Consumers to enjoy 20-minute delivery from Jumia Food

    BURN Cookstoves Awarded ISO 9001:2015 Certification for High-Quality Standards  

    BURN Cookstoves Awarded ISO 9001:2015 Certification for High-Quality Standards  

    General Insurers pay claims worth Sh16.85Bn in three months

    General Insurers pay claims worth Sh16.85Bn in three months

    Agilitee Unveils Electric Car to Retail at  Sh1.1Million

    Agilitee Unveils Electric Car to Retail at Sh1.1Million

    • Agribusiness
    • Banking
      Britam settles on veteran Tom Gitogo as CEO

      Britam settles on veteran Tom Gitogo as CEO

      I&M Bank Launches Single Regional Account and Real-Time Payments Platform

      I&M Bank Launches Single Regional Account and Real-Time Payments Platform

      Absa Set for Sh2 Billion Digital Systems Upgrade

      Absa Set for Sh2 Billion Digital Systems Upgrade

      How are Metropolitan National Sacco services? Give feedback here

      How much money have you saved this year?

      Absa hosts women entrepreneurs for the PanAfrican InspireME Conference

      Absa hosts women entrepreneurs for the PanAfrican InspireME Conference

      Family Bank, Aqua to Advance More  Financing to SME’s in The Water Space

      Family Bank, Aqua to Advance More Financing to SME’s in The Water Space

      How Co-op Bank’s eCommerce Solution Has Led To Smooth Running Of Businesses

      Co-op Bank And Its eCommerce Solution For Businesses

      Kuscco’s George Magutu appointed to head global cooperatives body

      Kuscco’s George Magutu appointed to head global cooperatives body

      Faulu Revamps of its Trade Finance Solutions

      Faulu Revamps of its Trade Finance Solutions

    • Insurance
      CIC Insurance Profits Rise 38 Percent to Sh464

      CIC Insurance Profits Rise 38 Percent to Sh464

      Faulu Revamps of its Trade Finance Solutions

      Faulu Revamps of its Trade Finance Solutions

      Zamara Feted as the Overall Best Insurance Broker of the Year

      Zamara Feted as the Overall Best Insurance Broker of the Year

      How Rot in The Insurance Sector is Exposing Kenyans to Lose Funds

      How Rot in The Insurance Sector is Exposing Kenyans to Lose Funds

      APA Life Assurance Partners With Craydel To Financially Empower Students

      APA Life Assurance Partners With Craydel To Financially Empower Students

      Kenya Orient Life Assurance Bags ‘Pension Marketing Campaign of The Year’ Award

      Kenya Orient Life Assurance Bags ‘Pension Marketing Campaign of The Year’ Award

      Jubilee Acquires Additional Stake in SEACOM

      Jubilee Acquires Additional Stake in SEACOM

      Over 1000 Women Benefit From Absa, KNCCI Financial Training

      Over 1000 Women Benefit From Absa, KNCCI Financial Training

      Family Bank is The Best in Customer Satisfaction-Survey

      Family Bank is The Best in Customer Satisfaction-Survey

    • Manufacturing
    • Opinion
      Is KRA to Blame For Deaths Caused By Illicit Brews?

      Is KRA to Blame For Deaths Caused By Illicit Brews?

      Opinion: Deploying contemporary Information Technology solutions for Academic Delivery

      Opinion: Deploying contemporary Information Technology solutions for Academic Delivery

      How COVID-19 Impacted the Adoption of Digital Health Technology

      How COVID-19 Impacted the Adoption of Digital Health Technology

      Why Kenyan economy is headed Pakistan direction

      Why Kenyan Economy is headed Pakistan direction

      Opinion: Create favorable conditions for increased value add in manufacturing

      Opinion: Recovery, growth key to creation of jobs in industries

      Lifestyle innovation is making home-life healthier for families

      Lifestyle innovation is making home-life healthier for families

      Car Loans Offering Convenient Mobility To Middle And Low-Income Families

      Car Loans Offering Convenient Mobility To Middle And Low-Income Families

      OPINION: Africa’s War to Secure the Internet  

      OPINION: Africa’s War to Secure the Internet  

      Prioritize long-term energy cost reduction for sustained industry growth

      Prioritize long-term energy cost reduction for sustained industry growth

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NSE sheds Sh210bn in two weeks of bank stock selloff

by Kenyan Business Feed
May 16, 2019
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Market News

NSE sheds Sh210bn in two weeks of bank stock selloff

Thursday, May 16, 2019 9:56


By CHARLES MWANIKI

NSE
Stockbrokers at the Nairobi Securities Exchange. FILE PHOTO | NMG   

Stock market investors have lost Sh210 billion paper wealth in the past two weeks as the falling share prices of telecommunications company Safaricom #ticker:SCOM and most bank counters pulled the NSE 20-Share Index to a 10-year low.

The Nairobi Securities Exchange (NSE) 20-Share Index, which captures movement of select blue chip stocks, has fallen to 2,682 points, a level last seen in March 2009.

Investor wealth as measured by market capitalisation has shrunk to Sh2.199 trillion from Sh2.4 trillion at the beginning of this month.

Bank stocks, which account for 28 percent of the NSE’s total market valuation and a fifth of the market’s 96.2 billion total issued shares issued shares, have been on a decline partly attributed to the end of the dividend announcements season.

“Banking stocks have continued to drag the market lower in what we think could be a combination of book closures for dividend (for the 2018 financial year), coupled with contagion effect of trade wars and a bearish 2019 sector outlook,” said Standard Investment Bank in a note to investors.

Safaricom, the largest listed firm by market capitalisation, has shed Sh2.85 this month closing Wednesday at Sh26.70 despite its books remaining open for a Sh1.87 combined final and special dividend for the year ended March 2019.

This has had the effect of shaving off Sh114 billion from its market valuation, which stands at Sh1.07 trillion. The firm’s impact on the price-weighted NSE 20 share index is however less pronounced due to its the lower nominal value compared to stocks such as EABL and BAT Kenya.

In the past two weeks, the share prices of the two-largest listed lenders — Equity Bank and KCB — have retreated by 13.3 percent and 13.1 percent respectively, shaving Sh21 billion and Sh17 billion off their market valuations.

Standard Chartered and Cooperative Bank have seen their valuations fall by Sh5.6 billion and Sh1.7 billion respectively after their share prices retreated by 8.3 and 2.4 percent this month.

I&M Holding’s stock has also significantly affected the collective valuation of bank stocks, with its price falling by half from Sh120.25 to Sh60.25 in a downward price correction after the lender closed books on a one-for-one share bonus on May 10.

Its market valuation currently stands at Sh24.89 billion, but is expected to rebound once the new 413.4 million shares are credited into shareholders’ accounts on May 23.

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Eight of the lenders are also trading ex-dividend, meaning that they have already closed their shareholder registers for 2018 payments.

Stocks tend to lose their lustre for dividend chasing investors once books have closed, with prices correcting back as demand weakens and some investors who have locked in the payout look to sell their shares.

The banking sector earnings outlook for this year is also clouded by the expected higher provisions for bad loans, which will directly hit profits and in turn dividend payments.

Genghis Capital analyst Patrick Mumu in a sector report on banks, predicted that loan provisions for the industry will rise by an average 53 percent year-on-year in 2019 as the IFRS base effect comes into play.

The new IFRS 9 accounting standards took effect from January 2018, but lenders were given a one-off opportunity to pass through some provisions in their reserves rather than the profit and loss account.

This year their bottom lines are however expected to suffer a hit as a result, especially with the sector bad loans ratio in the double digits.

“The asset quality in the banking sector has also been deteriorating over the past three years with the average NPL ratio recorded at 12 percent in December 2018 compared to 6.8 percent at the end of 2015, driven by a challenging operating environment,” said Mr Mumu.

Equity Bank #ticker:EQTY is so far the only listed lender that has released its quarter one results, which showed a 14 percent rise in provisions for bad loans to Sh409.9 million.

Equity Group’s gross non-performing loans rose by 22.4 percent or Sh5.4 billion to Sh29.4 billion in the three months to March, largely on the back of a deteriorating balance sheet in its Tanzania subsidiary where nearly a third of loans are not performing.

Other large blue chip counters at the NSE have in the meantime returned mixed performances this month.

BAT Kenya and Bamburi’s share prices remained unchanged Wednesday at Sh510 and Sh118 respectively compared to the beginning of the month.

EABL on the other hand has shed Sh19.25 or 8.6 percent in the two-week period, while KenGen #ticker:KEGN is down 0.6 percent at Sh6.12 per share.

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