Bank stocks took a beating at the Nairobi Securities Exchange last week, shedding a further Sh36 billion in collective capitalisation as the market bear run worsened.
Standard Chartered shed 8.5 per cent to Sh270 a share, followed by Kenya Commercial Bank at 8.3 per cent to Sh50 a share.
Equity Holdings and Cooperative Bank lost 6.5 per cent and 3.7 per cent respectively to Sh39.25 and Sh19.75 a share in what turned out to be a week to forget for big bank stocks.
The market saw a brief respite during the middle of the week when it rallied for two consecutive sessions, but a big dip on Friday where it shed 82 points to 4,404 points left it on the brink of breaking below the 4,400 points mark for the first time since January 2013.
“Injurious conditions have persisted in the market as financial announcements follow suit; Sameer Africa and ARM both posted losses… Kenya Airways announced one of the worst losses recorded in sub-Saharan Africa as an expansion strategy floundered due to adverse industry conditions,’’ said Genghis Capital analysts in a market report.
Kenya Airways closed 17.4 per cent down week-on-week at Sh5.70 a share in the wake of its unenviable Sh25.7 billion net loss for the financial year ended March 2015. Although KCB and BAT announced improved profits, their shares failed to pick up momentum, as each closed the week in the red.
Safaricom also helped pull down the index as it closed the week down six per cent to Sh14.40. Week-on-week, the NSE 20 share index was down 2.1 per cent or 96 points, while market capitalisation fell by Sh67 billion to Sh2.077 trillion.
Other big decliners in the week were Express Kenya, down 8.3 per cent to Sh5, and Home Afrika, down 7.5 per cent to Sh2.45.
Britam was the top gainer, up 21.6 per cent to Sh17.45, followed by Carbacid at 20.6 per cent to Sh16.95.
Pan Africa Insurance also saw good gains at 17.1 per cent to Sh72, as insurance stocks recovered during the week.