Business

Top milestones that prevailed on Kenyan markets and the economy

Tuesday, January 17th, 2023 11:00 | By
Economic growth expected to climb down to 5.3pc in 2023
Top milestones that prevailed on Kenyan markets and the economy

Best-performing stock

Car and General was the best-performing stock on the Nairobi Securities Exchange (NSE) in 2022. As of December 30, its share price had appreciated by 179.5 per cent to Sh47.45 from Sh16.98 on 31 December 2022. On the flip side, Centum Investment was the worst-performing stock, registering a price return of -40.7 per cent.

Sectors review

Across the sectors, the Automobile and Accessories sector maintained its 2021 trend to emerge as the stock with the highest average share price change during the year. The telecommunications sector comprising only Safaricom plunged the most in 2022. Safaricom, which officially launched its operations in Ethiopia last year closed the year by garnering a customer base of 1.3 million from Africa’s second most-populous nation.

Total returns

Car and General posted the highest total returns in the year at 186.27 per cent, followed by NCBA Group at 63.77 per cent and Olympia Capital Holdings at 48 per cent. Safaricom Plc, Centum Investments Plc and Nairobi Business Ventures were the three trailing stocks respectively at -30.6 per cent, -33.65 per cent and -37.8 per cent.

Indices

In terms of indices, the Nairobi All Share Index (NASI), NSE 20 and NSE 25 all slid. NASI fell 23.4 per cent year-over-year, to close at 127.47 points, while the NSE 20 Index slid 11.9 per cent to close at 1,676.1 points from 1,902.6. The NSE 25 Index also dropped 16.3 per cent to close at 3,133.6 points from 3,743.9 recorded the previous year.

Market Cap

Total Market Capitalization at the bourse fell 23.4 per cent to Sh1.9 trillion from the 2021 figure of Sh2.6 trillion. However, total shares traded were up 88.6 per cent to 19.2 million, against the 10.2 million that was realized in 2021. Equity turnover edged higher by 44.1 per cent to Sh496.6 billion against Sh344.6 billion the prior year.

Price returns

NCBA was the best-performing stock in 2022 in terms of price returns, benefitting from the highest year-over-year change in Net Profit in the third quarter with the lender returning a 96.2 per cent profit equivalent to Sh12.8 billion. The year saw the counter appreciate by 56.2 per cent to reach Sh39.35 against Sh25.2 billion the previous year. It also registered an average share price change of 0.6 per cent against 9.8 per cent in 2021.

Sectoral Growth

After a rebound in the third quarter of 2021 due to the waning Covid-19 pandemic, growth decelerated across most sectors in the third quarter of 2022, the Accommodation and Food Service sector grew the most by 22.9 per cent, followed by the Wholesale and Retail Trade and the Professional and Administrative sectors at 9.1 per cent and 8.7 per cent, respectively.

Balance of Trade

During the third quarter, imports stood at Sh661.8 billion, representing an increase of 22.2 per cent. Total exports also rose by 29.7 per cent to reach Sh227.8 billion, bringing the trade account deficit to Sh434 billion against Sh366.1 billion in the prior period.

Current Account Deficit

The deficit widened by 5.5 per cent to reach Sh193.4 billion in the third quarter against Sh183.4 billion posted in a similar period in 2021. This accounted for 6 per cent of the Gross Domestic Product in quarter 3 a slight reduction from the 6.2 per cent achieved in 2021.

Diaspora Remittances

In the third quarter, Kenyans living abroad sent home a total of Sh114.3 billion, or 50 per cent of total exports, increasing from Sh106.1 billion or 61.3 per cent of exports in 2021. President William Ruto has since indicated that his administration will tap Sh1 trillion in remittances in 2023.

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