Bank stocks reacts negatively to new interest rates law

August 25, 2016
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Diamond Trust Bank was the worst hit as its shares fell by 10.69 percent to trade at Sh142 Wednesday's Sh159 followed by I&M Bank whose shares fell 9.81 percent to trade at Sh96.50 from Wednesday's Sh107.00/FILE
Diamond Trust Bank was the worst hit as its shares fell by 10.69 percent to trade at Sh142 Wednesday’s Sh159 followed by I&M Bank whose shares fell 9.81 percent to trade at Sh96.50 from Wednesday’s Sh107.00/FILE

, NAIROBI, Kenya, Aug 25 – Stocks for the banking sector fell on Thursday at the Nairobi Securities Exchange a day after President Uhuru Kenyatta signed a new law to cap interest rates.

Diamond Trust Bank was the worst hit as its shares fell by 10.69 percent to trade at Sh142 Wednesday’s Sh159 followed by I&M Bank whose shares fell 9.81 percent to trade at Sh96.50 from Wednesday’s Sh107.00.

Co- operative Bank’s share went down by 9.81 percent to settle at Sh11.95 while Equity Group shares declined by 9.03 percent to trade at Sh32.75.

Barclays Bank of Kenya dipped 8.76 percent to Sh8.85 and moved 159,000 shares while KCB Group declined by 8.39 percent to settle at Sh30.00 on a volume of 135,000 shares.

“This is a market reaction to the news of the President assenting to the interest rates bill, but the market will settle down, this does not determine the way forward,” said Kenya Bankers Association Chief Executive Habil Olaka.

CFC Stanbic Bank and NIC Bank fell 8.13 percent and 7.02 percent respectively.

Shares for Housing Finance fell by 3.44 percent to trade at Sh15.45 while National Bank of Kenya fell k2.78 percent to trade at Sh7.00.

Standard Chartered Bank shares dipped by 0.97 percent to trade at Sh205.00.

The banking sector had 441,000 shares traded and represented 1.17 percent of Thursday’s traded volume

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