NSE picks Ksh140b in four days
Nairobi Securities Exchange (NSE) posted perhaps one of its strongest recoveries this year after months of global and local uncertainties occasioned by a cutthroat electioneering period in Kenya.
The stock market gained in excess of Sh140 billion in four days to hit a market capitalisation of Sh2.245 trillion on Wednesday before settling at Sh2.238 trillion on Thursday.
Sentiments of the market drivers were expressed after the Supreme Court ruling that backed President-Elect William Ruto’s election and President Kenyatta’s speech on Tuesday in which he committed to the peaceful transfer of power.
“Market turnover rose to Sh288 million from the previous sessions Sh260 million, the number of shares traded stood at 10 million against 10.5 million posted on Wednesday,” NSE said yesterday.
The main drivers
“Banking sector had shares worth Sh128 million transacted which accounted for 44.26 per cent of the day’s traded value.”
Safaricom, Britam, EABL, KCB and Equity were among the main drivers of the market as investors moved back into the market to take advantage of lower prices.
Exits by foreign investors had slowed down daily sales from almost 100 per cent selling in previous months.
Before the announcement of the winner of the elections, foreign investors were on a selling spree on the NSE, disposing of a total of Sh502.2 million ($4.2 million) worth of shares in four days - from election day on August 8 to the day of the announcement, excluding weekends, according to NSE data.
However, the trend reversed on August 16 when foreigners turned into net buyers by acquiring shares valued at Sh25.79 million ($216,722.68) on the NSE, in one day.
The market rose by Sh42 billion on Monday and gained Sh102 billion the following day pulling millions of inventors out losses.
Analysts who weighed in however say that the economic fundamentals of the country will soon take over to reflect the dire state of the country’s finances.