The Nairobi Securities Exchange (NSE) investors’ are happy investors after gaining Sh264.5 billion in 30 days, reducing the losses caused by the pandemic and absorbing part of the financial crisis that had hit the economy.
The value of stock at the NSE on Wednesday was a whopping Sh2.265 trillion while in April was Sh2 trillion. However, it is below the Sh2.6 trillion hit on January 10.
The performance at the NSE was largely contributed by Safaricom, KCB Group, Equity Group and the East Africa Breweries Ltd, who gained 82.4 per cent over the period on the paper wealth.
“The rally can be partly attributed to Safaricom, which has seen a spike in foreign investor interest. While foreign investors were selling banking stocks, local investors have been buying,” said Churchill Ogutu, Gengis Capital senior research Analyst.
The demand for more stocks at the NSE 20-Share Index has also been triggered by the divided paying season which have seen more share traded over the month.
According to analysts, the gain at the NSE was also attributed by the exist of foreign investors pointing out that stampede is not certain on earning prospects on Kenyan firms. Foreign investors flee off after coronavirus was declared a pandemic.
The foreign investors have been selling stocks in other markets like Japan, Australia, the United States and the United Kingdom.