KCB stock sheds 2.4 per cent even as profit rises

Money Markets

1. 

Customers are served at a KCB branch. The lender was the largest mover at the NSE with 5.16 million shares worth Sh312.2 million traded. PHOTO | FILE 

By CHARLES MWANIKI

In Summary

• Analysts at Standard Investment Bank (SIB) said investors may have anticipated higher profit from the bank, which could have affected the share performance.

KCB stock yesterday shed 2.4 per cent to settle at Sh60.50 even as the bank recorded a 12 per cent growth in first quarter net profit.

The counter was the largest mover at the NSE with 5.16 million shares worth Sh312.2 million traded, ahead of Safaricom which had a turnover of Sh209 million from 11.9 million shares.

Analysts at Standard Investment Bank (SIB) said investors may have anticipated higher profit from the bank, which could have affected the share performance.

“While balance sheet growth was above forecast, earnings performance was below expectation… the share was down 2.4 per cent with investors seemingly not impressed by the quarter one results,” said Standard Investment Bank in a market report.

READ: KCB value hits Sh190 billion on foreign investor demand

Higher

KCB net profit for the first three months of the year grew 12 per cent to Sh4.3 billion on the back of higher interest income and fees and commissions arising from new business lines.

Equity Bank stock joined KCB on the losing side, shedding 3.6 per cent to close at Sh47.25.

On the gaining side, Crown Paints led with an increase of 9.6 per cent to Sh126, while Flame Tree group followed with a gain of 7.8 per cent to Sh9.70.