Despite reporting a growth in earnings during the first quarter of the year, Bank of Kigali (BK) saw its shares slip further on the Rwanda Stock Exchange (RSE), closing at Rwf155 down from Rwf172 during Monday’s trading.

The lender released its 2nd quarter financial results on Monday.

The bank was listed on the secondary market on Thursday last week with its shares closing at Rwf190 from the Rwf125 Initial Public Offering (IPO) price before bouncing to Rwf192 on Friday.

The Operations Officer at African Alliance Rwanda, Lionel Mudandi, told Business Times in a phone interview that while there is demand for BK shares, some investors have expressed concern about the trend in prices.

He added that: "It is a matter of getting the point of equilibrium and the share price will go up again. This is normal market trend.”

According to BK’s quarter two financial statements, the lender’s net profits increased by 3.1 per cent in net profits to Rwf1.975b from Rwf1.9b in the previous quarter.

"We are delighted that we have managed to grow our balance sheet and further increase our market share by total assets. We will continue growing the Bank, with a focus on profitability and increasing shareholder value,” BK’s Managing Director, James Gatera, noted.

The Bank’s total assets grew by 16.7 per cent quarter-on-quarter and 40.9 per cent year-on-year reaching Rwf246,466 million as at June 30, 2011.

Meanwhile, Bralirwa shares traded slightly higher as the share price closed at Rwf247 registering an increase of Rwf1.

KCB and NMG’s shares last transacted at Rwf175 and Rwf1,200 respectively, according to the market report from the Capital Market Advisory Council (CMAC).

The total turnover for the day was Rwf8,166,500 from 33,000 Bralirwa shares while 100 BK shares traded in nine deals, the report stated.

At the end of business, there were outstanding offers of 4,580,600 BK shares at between Rwf155 and Rwf161 with no bids.

On the other hand there was an outstanding bid of 78,000 Bralirwa shares at Rwf247 and no offers.

Ends