The investor wealth value on the Nairobi Securities Exchange (NSE) recorded Sh2.5 trillion on Friday, a year high boosted by Safaricom share price’ record.
As a result of Safaricom’s Sh0.45 per interim dividend announcement, its share price hit Sh38.50 during Friday’s trading. This level was last seen in February 2020 before the existence of the coronavirus in Kenya.
“We have seen the surprise dividend announcement at Safaricom and East African Breweries rally over the past two weeks, and that has sort of lifted the market. I think the rally is still very restricted and is not the entire bourse. The market is picking up success stories and running with it,” said Eric Musau, head of research at Standard Investment Bank.
Data derived from Capital Markets Authority (CMA) revealed that there was a decrease by 24.85 percent to 969.57 million in quarter four of 2020 whereas, in the fourth quarter of 2019, the volume traded was 1.29 billion.
“Equity turnover for quarter four of 2020 stood at Sh27.51 Billion, compared to Sh45.01 billion registered in quarter four of 2019; a 38.88 percent decrease, confirming a decrease in investor participation at the bourse,” CMA director regulatory policy & strategy Luke Ombara stated.