Imperial Bank’s Bond Listing and Trading Suspended

Tuesday’s trading was characterized by varied trends in various sectors with energy sector posting the highest gain of 2.89% and the banking sector posting the highest loss of 2.72%. The NSE-20 Share Index declined by 0.32% to close at 3978.70 points whilst the NSE-25 Share Index slumped by 1.16% to close at 4054.42 points. Nairobi All Share Index (NASI) portrayed a similar trend, registering a decline of 0.75% to close at 139.87, emphasizing on the current bear run. The market capitalization contracted by 0.75% to close at KES 1,967.41 billion while equity turnover bucked the trend, gaining by a marginal 1.34% to close at KES 552.01 million.

Recently, the banking sector has continued being stocked by the sharp decline in investor confidence and heightened jitters emanating from the various actions the regulator has been taking upon them. Tuesday was marked by another mid-tier lender, Imperial Bank being placed under receivership, citing “unsafe banking conditions” as the reason leading to the same.

The bank had recently issued a bond attracting a 101% performance rate and was set for listing today, 13th October 2015. The listing and trading on the bourse was however suspended by CMA in a move meant to protect the interest of the public and investors. The lender becomes the second bank to be placed under receivership after Dubai Bank.

Equity Market Highlights

Equity Group Holdings Ltd (NSE: EQTY) was the most actively traded stock accounting for 47.22% of the total market activity. Safaricom Ltd (NSE: SCOM) closed in second position, accounting for 10.73% of the days traded value.

KenGen Ltd (NSE: KEGN) capped the gainers chart with a price appreciation of 19.88% to close the day at KES 9.95 following the mounting up of investor confidence based on brilliant FY15 results. E.A. Cables Ltd (NSE: CABL) climbed 3.32%, to close the day in second place at KES 10.90.

Atlas Development & Support Services Ltd (NSE: ADSS) was the top laggard of the day, sliding by 8.33% to KES 2.75. NIC Bank Ltd (NSE: NIC) charted a similar trend, depreciating by 6.71% to KES 38.25.