Kenya’s stock market has surged, gaining KSh 114.8 billion in market value in 3 weeks to hit a two-year high of KSh 2.05 trillion, as multiple stocks rallied in a sustained bullish market at the Nairobi Securities Exchange (NSE).
- •Investor wealth, as shown by the market capitalization, surged 6% to KSh 2.054 trillion from KSh 1.8 trillion on the last day of trading in December 2024.
- •The benchmark index – NSE 25 was up 1.99% in January to 3,470.62 points from 3,402.80 points on 31st December 2024.
- •The market remained bullish as signalled by the NSE All share index (NASI) which gained 5.9% to close at 130.79 points on Friday from 123.48 points on 31st December 2024.
The gains were propelled by massive year to date gains from stocks across the sectors including Kenya Airways (121.9%), HF Group (99.1%), Kenya Power (45.1%), Kenya Re (29.7%), Britam (28.6%) and Trans Century (28.2%).
The insurance sector saw the highest capital gains, with a 20.5% median year-to-date helped by Britam, Kenya Re and Sanlam. The banking sector remained resilient, recording a 0.2% year to date median gain buoyed by 99.1% gain in HF Group. Gains from Kenya Power and KenGen buoyed the 11.7% median increase in the Energy and Petroleum sector.
In the 3 weeks of January 2025, 38 stocks advanced to periodic highs while 17 saw price declines with the market averaging 42% in year to date returns.
The NSE has benefitted from the Central Bank’s aggressive rate cuts in the final quarter of 2024, prompting investors to favor the stock market for attractive returns. Improved economic conditions in the country coupled with improved earnings boosted investor confidence and led to higher prices and valuations in 2024.
