Housing Finance share up 19pc as stocks halt slide

Money Markets

Brokers on the trading floor of the Nairobi Securities Exchange. PHOTO | FILE 

By GEORGE NGIGI, gngigi@ke.nationmedia.com

In Summary

• Housing Finance shares traded at Sh16.65 each up from Sh13.95 at the beginning of the week.

Housing Finance share price at the Nairobi Securities Exchange gained 19 per cent last week as banking stocks stabilised following a tumultuous period after signing of a law capping interest rates.

Housing Finance shares traded at Sh16.65 each up from Sh13.95 at the beginning of the week.

NIC Bank gained 15.6 per cent during the week to trade at Sh27.75 per unit while Barclays rose from 12.8 per cent to Sh9.65.

Those that remained on the losing side include Equity Bank which fell 10 per cent to Sh26.50 per share and I&M, shedding 5.1 per cent.

Analysts had expected the banking counters to experience another period of turmoil after they declared they would apply the new lower rates on existing loans. Application of the rate on existing loans is expected to hit the banks’ profitability harder.

Stability of the banking counters saw the indicative NSE 20 share index hold steady at 3187.7 points.

READ: NSE 20 Share Index sinks to five-year low as rate cap bites

Foreign investors have been the key players in the market as sellers and also buyers. There had been fears that exit of foreign investors would result in the fall of the shilling.

TransCentury, which bounced back to profit following a debt pardon, was the largest gainer up 45.5 per cent to Sh6.55 per share. The company made a net profit of Sh1.3 billion in the six months ended June after the Sh4 billion debt forgiveness.

The company’s bond holders reduced their claim from Sh8 billion to Sh4 billion, lightening its liabilities.