Morgan Stanley Capital International (MSCI), a company that globally provides financial indices, during a recent market analysis, reported Nairobi Securities Exchange (NSE) as one of the best performing stock markets in terms of dollars as it was ranked the third highest.
The year- to- date analysis for returns shows that Kenya’s return value was at 38.4% after that of Nigeria and Morocco whose returns were 39.3% and 502% respectively. This noteworthy performance by NSE, was mainly attributed by increased foreign activity, a stabilizing shilling, improved corporate earnings and NSE leadership. This gain comes at a crucial time, as the government intensifies efforts to position Nairobi as a regional financial hub under its vision 2030 blueprint, and consequentially it also boosts confidence in investors.
Nairobi Securities Exchange has had an upward trajectory in its share prices over the last two months, that has projected a surge in market valuation by KES. 368.7billion to its current value of KES. 2.79 trillion since the end of June. The top gainers from the trading activity include, KenGen, Kenya Re, HF group, Co-operative bank of Kenya and Safaricom.
“Nairobi Securities Exchage (NSE), has shown remarkable resilience and adaptability. Despite global headwinds and local challenges, the bourse has remained attractive particularly in sectors such as banking, telecommunications and agriculture.” Said Mary Wanjiku, a Nairobi based investment analyst.
Positive returns by Nairobi Securities Exchange were underscored by foreign portfolio inflows, mainly from institutional investors targeting frontier and emerging markets. However, some foreign investors chose to reserve profits on their investments after the recent price rally resulting in net outflows of KES. 1.17billion. As the global search for yield continues, Kenya’s equities market appears to offer both growth potential and relative stability.
On the macroeconomic scope, Kenya has marked great improvement and signs of immense potential, which is a good encourager to stakeholders at NSE as they remain hopeful that the performance will be sustained.
