The Nairobi Securities Exchange (NSE) witnessed a significant surge on Tuesday, boosting investor wealth by Sh95.53 billion, marking its largest single-day gain in 18 months. This propelled the market capitalization to Sh1.831 trillion by day’s end.
Local investors, particularly institutional players, drove this surge, showing a strong preference for blue-chip stocks. Analysts attribute this to anticipation of a Federal Reserve rate cut in June, stable currency conditions, and positive macroeconomic indicators.
While local participation was robust, foreign investors remained net sellers, though sentiment is shifting due to improved forex market conditions and a strengthened Kenyan shilling, up 18 percent against the dollar this year.
Leading the gains were Safaricom, adding Sh66.1 billion to its market capitalization, and KCB, with a Sh8.4 billion increase. Other notable gainers included Equity Group and NCBA.
Investor optimism surrounds expected higher dividend payouts from banks as they prepare to announce their 2023 financial results.
This surge underscores the resilience of the Kenyan stock market and presents promising opportunities for investors amidst favorable domestic and international factors.
photo source: Google
By: Montel Kamau
Serrari Financial Analyst
27th March, 2024
