The Nairobi Securities Exchange (NSE) has rebounded from a dreadful first half of 2022 as easing rate rise expectations in the US, and a scramble for falling stocks fuelled the rally in July.
According to Bloomberg, the NSE All-Share Index jumped 15%, the most in July since the gauge was introduced in 2008. That was also the strongest rally among 155 benchmarks in Europe, the Middle East and Africa.
Market capitalisation increased by Sh259 billion in July to Sh2.198, driven by local investors snapping shares dumped by foreigners that shifted the capital to safe havens abroad.
Safaricom Plc, which accounts for more than half of the main index, soared 20%, the most since November 2009, thanks to bargain hunting among local investors as foreigners withdrew from the market.
According to the Capital Markets Authority, foreign investors accounted for 62% of Nairobi equity market trading in the second quarter, up from 55% in the three months ended March.
Net foreign outflows from stocks jumped to kes 10.9 billion ($92 million) in April-June from 1.69 billion shillings in the first quarter.