Investors, especially banks, rushed to purchase government securities in the week ended April 17 despite declining rate of return in what analysts view as a protest to the Central Bank of Kenya to relax monetary policy.
The Treasury bill auction received bids totalling Sh38.4 billion against an advertised amount of Sh24 billion, representing a performance of 160.1 per cent. Interest rate on the 91-day, 182-day and 364-day Treasury bills declined further to 8.4,8.7 and 10 per cent respectively.
Early this month, the apex bank further cut the base lending rate by 75 basis points to 10 per cent in a move to cheapen credit for private sector growth. CBK issued a stern warning to banks to ensure borrowers benefit from reduced lending rates or risk penalties.
Bond turnover in the domestic secondary market, however, decreased by 19 per cent during the week.
Longhorn Publishers, which narrowed its net loss by 28.3 per cent in the six months to December 2024, continued to command the gaining list at the Nairobi Securities Exchange, gaining 9.2 per cent to close the week at Sh2.74.
The packed Easter holiday festivities saw the listed hotel chain TPS Eastern Africa’s share gain by close to four per cent to close the week at Sh15 as guests filled its facilities. It manages 15 hotels and resorts across East Africa under the Serena brand name.
BK Group Plc, which has a primary listing on the Rwanda Stock Exchange and a secondary listing on the Nairobi Securities Exchange, will be giving significant dividends to shareholders on May 2, following impressive fill year results. This saw the firm’s share at NSE gain three per cent to close the week at Sh33.
In the six months ending December 2024, Unga Group posted a net profit of Sh82.17 million, marking the first profit in two-and-a-half years. This turnaround follows a period of losses, with the previous half-year seeing a net loss of Sh341.6 million. The company's revenue for the period reached Sh12.94 billion, a modest four per cent increase. This development saw its share at NSE gain by 3.12 per cent to Sh22.4.
At the Nairobi Securities Exchange, the NASI, NSE 25 and NSE 20 share price indices increased by 0.21 percent, 0.80 percent and 1.47 percent, respectively during the week ending April 16. Market capitalization increased by 0.21 percent while total shares traded and equity turnover decreased by 18.51 percent and 21.22 percent, respectively.
