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Mixed Market Performance As Local Investors Dominate: Diamond Trust Bank Posts Solid 1H24 Results

BY Soko Directory Team · August 28, 2024 12:08 pm

In Tuesday’s trading session, the Kenyan stock market closed on a mixed note, reflecting the diverse investor sentiments that defined the day. The Nairobi All Share Index (NASI), NSE 25, and NSE 10 all recorded slight declines of 0.4%, 0.6%, and 0.1%, respectively. However, the NSE 20 index bucked the trend, gaining 0.5%, signaling selective bullishness among key stocks.

Market Turnover Surges

Equity turnover saw a significant uptick, surging 3.3 times to close at USD 3.1 million. Local investors were the predominant force behind this surge, accounting for 64.8% of the day’s trading activity. In contrast, foreign investors, who represented 35.2% of the turnover, were more cautious, leading to net outflows of USD 639.5k.

Read Also: Dear Entrepreneur, Here Is How To Start Investing In Stock Market

Key Movers: KCB Group Leads, BAT Shines, Safaricom Slips

KCB Group emerged as the day’s most active stock, contributing 28.1% to the total market turnover, despite shedding 0.5% to close at KES 31.50. On the other hand, BAT recorded a 0.7% gain, closing at KES 344.00, making it the best-performing top mover of the day.

Meanwhile, Safaricom, a heavyweight in the market, saw a decline of 0.7% to KES 14.80, driven primarily by foreign investor selling pressure. Notably, Olympia Capital emerged as the top gainer, surging 9.4% to KES 2.90, while I&M Bank suffered the biggest loss of the day, plummeting 9.8% to KES 22.60.

Diamond Trust Bank Reports Robust 1H24 Performance

In corporate news, Diamond Trust Bank Kenya Ltd (DTB) announced its half-year financial results, showcasing a resilient performance despite the challenging economic environment. The bank reported an 8.6% year-on-year increase in earnings per share (EPS) to KES 15.54, with net attributable income reaching KES 4.3 billion.

The solid performance was underpinned by a 17.9% year-on-year growth in net interest income (NII) to KES 29.7 billion, alongside a 15.1% increase in non-interest revenue (NIR) to KES 6.4 billion. The revenue boost is attributed to strategic repricing following the benchmark interest rate adjustments in the first half of 2024, coupled with a potential rise in short-term lending.

However, the bank’s interest expenses surged by 28.6% year-on-year, outpacing income growth, driven by a 27.5% increase in deposit costs. Despite these challenges, DTB managed to maintain a stable cost of risk at 2.5% and reported an impressive 27.8% rise in fees and commissions, signaling the effectiveness of its expansion and digitization efforts.

DTB’s focus on government securities, which now make up 32.3% of its total assets, continues to yield positive results, with mark-to-market gains of KES 1.1 billion in 1H24, a significant turnaround from a loss of KES 270.8 million in the previous year.

Overall, the market’s mixed performance and DTB’s robust results highlight the ongoing complexities in the Kenyan financial landscape, where selective opportunities coexist with broader market challenges.

Read Also: The Significance of Stock Market Education And the Impact Of Foreign Investors On The NSE

Soko Directory is a Financial and Markets digital portal that tracks brands, listed firms on the NSE, SMEs and trend setters in the markets eco-system. Find us on Facebook: facebook.com/SokoDirectory and on Twitter: twitter.com/SokoDirectory

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