Barclays Bank Enters Agribusiness Space

Varied drifts were evident on the benchmark indices following the closure of the day’s trading activities. The NSE-20 share index registered a 0.14% slump to close at 3887.53 points while the NSE All Share Index was on the green, advancing by 0.50% to clinch at 141.34 points. The NSE 25 Share index also remained on the gaining front, improving by 0.03% to 4092.07 points. Market capitalisation equally extended by 0.50% to close at KES 1,988.18Bn whilst the equity turnover gained a hefty 192.34% to close at KES 0.789sBn buoyed by the heavy trading activities on the banking stocks.

Barclays Bank of Kenya (NSE: BBK) has commenced an agribusiness unit to finance firms in the agricultural value chain. The bank has set aside a KES 30Bn kitty for small and medium enterprises operating in the agribusiness sector. The new unit comes after the bank set up an asset financing product that can go into lending for machinery and bancassurance products.

The new business line will enable the bank to grow its SME loan book as it seeks to compete with other listed lenders who have already tapped into the SME space. The lender, known for impressive dividend pay outs, is expected to announce their Q3 2015 results before end of this month. A lot of activity was registered on the stock, as depicted by the volumes traded (907,700 shares) did not result in any price change, hence the stock closed at a vwap of KES 12.65.

Equity Market Highlights

CFC Stanbic of Kenya Ltd (NSE: CFC) was the most actively traded stock today accounting for 41.02 % of the total market value traded activity. Equity Group Holdings Ltd (NSE: EQTY) closed in second place, accounting for 20.57% of the days traded value.

Atlas Development & Support Services Ltd (NSE: ADSS) was the top gainer for the day, edging up 8.77% to close the day at KES 3.10. B.O.C. Kenya Ltd (NSE: BOC) gained 4.00% to close at KES 104.00, buoyed by only 100 shares traded during the day.

Standard Group Ltd (NSE: SGL) was the top loser of the day, shaving 7.76 % to close at KES 26.75. Longhorn Publishers Ltd (NSE: LKL)trailed behind, plummeting by 4.04% to close at KES 4.75.