The Nairobi Securities Exchange (NSE) experienced a notable upswing on Tuesday, with investor wealth surging by KES 95.5 billion, marking its most substantial single-day increase in 18 months.
This surge was primarily attributed to the performance of blue-chip companies, notably led by Safaricom, as local investors exhibited a growing interest in equities.
By the market’s close, the NSE’s market capitalization reached KES 1.8 trillion, reaching a pinnacle not observed since October 3, 2023.
The last instance of such a significant daily gain dates back to September 6, 2022, when the market escalated by KES 102.7 billion following the Supreme Court’s affirmation of President William Ruto’s victory in the 2022 General Election, propelling the market by KES 153 billion over September 5 and 6, 2022.
However, a subsequent correction during the ensuing week led to KES 233 billion being shaved off the NSE’s market capitalization.
Throughout this week’s trading, local investors emerged as the driving force behind market activity. Analysts posit that these investors are actively seeking to acquire shares, anticipating favorable entry opportunities amid the upward trajectory of share prices.
Conversely, foreign investors have been net sellers at the NSE in recent days. Tuesday witnessed a net withdrawal of KES 153.9 million, following Monday’s net sales of KES 917.6 million. In the preceding week, net sales amounted to KES 120.8 million.
Safaricom spearheaded Tuesday’s trading, accruing a market capitalization of KES 66.1 billion and concluding the day with a valuation of KES 771.3 million. Its share price surged by 9.4% to KES 19.25.
KCB emerged as the standout performer in terms of share price movement, recording a 9.6% increase to KES 29.80, thereby adding KES 8.4 billion to its market capitalization.
Equity Group and NCBA also featured prominently among the top gainers in market capitalization. Equity Group witnessed an increase of KES 10.75 billion as its share price rose by 6.1% to KES 49.20, while NCBA gained KES 2.8 billion with a 4% rise in share price to KES 44.55.
Over the past fortnight, banks have prominently advanced in the market, partly attributed to investor anticipation of enhanced dividend payouts upon the disclosure of their 2023 financial results.
