Equity Group Posts 14% After Tax Profits

By / Published October 27, 2015 | 6:19 am

The bourse closed in a bleak state occasioned by the downturn on all the market indicators. The NSE-20 Share Index closed in the red; edging down by 0.41% to close at 3936.60 points whilst the NSE-25 Share Index went down by 0.43% to close at 4046.60 points. The Nairobi All Share Index (NASI) curved a similar trend, declining by 0.90% to close at 138.28 points.

Investors’ wealth similarly shrank by 0.90% to perch at KES 1,945.02 billion whilst equity turnover declined by 79.92% to KES 0.199 billion. The decliners outweighed the advancers, resulting in an A/D ratio of 0.68x. Equity Group Holdings Ltd (NSE: EQTY) announced its Q3 15 results for the period ended 30th September 2015 posting some good news to its investors in the wake of high interest rate environment. The Group announced a 14% after tax profits to KES 12.8 Billion underpinned by growth in regional banking subsidiaries, which recorded a 92% surge in profits. These deciphered into Kenyan Banking contributing 86% of profits down from 94% last year. We expect further growth in the banks topline driven by regional expansion which will drive revenue growth. In addition, we also expect the bank to maintain the fast growth, mainly from increased customer numbers, equity agencies and further integration and use of the mobile banking platform.

Equity Market Highlights

Safaricom Ltd (NSE: SCOM) was the most actively traded stock today accounting for 30.92% of the total market activity driven by increased accumulative activities. Kenya Commercial Bank Ltd (NSE:KCB) closed in second position, accounting for 23.76% of the days traded value.

Liberty Kenya Holdings (NSE: CFCI) topped the gainers list with a price surge of 4.59% to close the day at KES 20.50. Carbacid Investments Ltd (NSE: CARB) extended by 3.87%, to close at KES 14.75.

Longhorn Publishers Ltd (NSE: LKL) was the major laggard of the day tapering by 9.62% of its value to KES 4.70. Uchumi Supermarkets Ltd (NSE: UCHM) straggled behind, depreciating by 4.26% to close at KES 9.00.