NSE market cap surges by 2.1pc to Sh2.7tr in June
SHARES: Optimism crept into the Kenyan securities market in June with market capitalisation surging by 2.1 per cent to Sh 2.7 trillion from May’s Sh2.65 trillion.
Nairobi Securities Exchange (NSE) data shows that the value of shares traded on the Nairobi bourse in June was by a rally in Safaricom and banking stocks that has seen investors gain billions since mid-May.
Safaricom, Equity, KCB, East African Breweries Ltd, NCBA and Co-operative Bank of Kenya recorded improved performance, with the telco leading during the month at 41.09 per cent of total turnover.
However, according to The Barometer Bulletin, equity turnover decreased by 1.5 per cent to Sh13.95 billion from Sh14.2 billion, while bonds turnover dipped by 9.6 per cent from Sh.106.9 billion to Sh.96.6 billion.
Inflation rate increased to 6.32 per cent in the month under review from 5.87 percent recorded in May 2021, which was blamed on increasing food prices.
Kenya’s private sector during the month under review also recorded a marginal growth according to estimates by Stanbic Bank Kenya Purchasing Managers Index (PMI) Survey for June – which showed a rise in output and new orders for the second month on the bounce.
As a result of a somewhat steady economy, economic experts have forecast an improved foreign investment inflows by multinationals not only in Kenya but also across the region despite the economic setbacks caused by the Covid-19 pandemic.
The month also saw the National Treasury revise the gross domestic product (GDP) growth forecast for 2021 to 6.6 per cent from 6.4 per cent, owing to lower base in 2020, stable macroeconomic environment, implementation of the Big Four agenda and Economic Recovery Strategy and expected favorable weather conditions that are expected to boost agriculture, and subsequently exports.