KCB market value falls below Sh100bn as bear run deepens

The market capitalization of KCB Group fell below Sh100 billion amid deep market sell-off that caused huge paper losses for most of the companies listed on the Nairobi Stock Exchange.

The bank’s share price fell 2.64% on Wednesday to close at a 52-week low of Sh29.45.

This led to a further decline in its market value to reach 94.6 billion shekels. The bank has held a market capitalization of more than Sh100 billion since 2019 when it acquired the National Bank of Kenya through a share swap.

KCB’s share price is down 19.3 percent over the past 12 months.

The bank is among the counters in the NSE that have taken a beating amid the flight of foreign investors, with sell-off continuing despite higher corporate earnings and dividend payments.

is reading: KCB surpasses Safaricom in net assets

All of the listed banks posted higher profits for the year ending in December. The majority also declared higher dividends.

However, KCB bucked the trend, cutting its dividend to Sh2 per share from Sh3 in the previous year per share. But the bank grew its net income by 19.5 percent to Sh40.8 billion.

KCB revealed that it spent Sh25.1 billion last year acquiring an 85% stake in the DRC Trust Merchant Bank (TMB).

Some of the stampede is attributed to the weakness of the shilling and the difficulty of accessing the dollar, which are factors that hurt returns and cause some foreign investors to flee with the difficulty of attracting new capital to the market.

A total of 23 stocks were in the red on Wednesday including blue chips such as Co-operative Bank of Kenya, Equity Group and Safaricom which on Thursday will announce results for the year ending in March.

And 14 stocks recorded gains, mostly from small companies such as Home Africa, Olympia Capital, Eveready East Africa and Crown Paints.

is reading: NSSF sells KCB shares worth Sh837 million in a rare move

While the bear market has generated large paper losses, it has raised dividend yields for income-focused investors who take long-term positions.

→ (email protected)