Stock market bulls and bears

Business Daily Kenya:  The wealth of stock investors at the Nairobi Securities Exchange (NSE) grew by Sh304.65 billion during the first six...

Business Daily Kenya: 

Bank stocks lose Sh46b in market value. Photo/Courtesy

The wealth of stock investors at the Nairobi Securities Exchange (NSE) grew by Sh304.65 billion during the first six months of this year despite anxiety of a slowdown in activity ahead of the General Election.

The wealth, measured by market capitalisation, which is the value of all stocks, rose by 15.9 per cent to Sh2.22 trillion between January 3 and June 29 bouyed by share price appreciation in construction, investment, telecommunications, energy and banking sectors.

Data from the bourse indicates that the NSE 20 and NSE 25 share index — which track performance of the bourse — rose from 3,206.24 to 3,596.56 and 3,512.78 to 4,069.38 points respectively, which was a rise of 12.17 and 15.8 per cent.

Telecommunications, construction, banking, energy and manufacturing sectors recorded price increase by registering 21.03, 17, 16, 10.5 and 2.4 rise respectively. “The rise of Safaricom share price, which is the only listed firm in the telecommunications sector, was due to interest by foreign investors,” said Cytonn Investment Manager, Maurice Oduor.

Bond turnover during the period under review increased from Sh0.44 billion to Sh2.54 billion, which is a 477 per cent rise. However, turnover for the stocks increased by almost 108.2 per cent.

“The bond market activity and turnover is expected to remain high this year as commercial banks increase their investment in government securities and slow down on unsecured lending,” said Cytonn Investment Manager, Maurice Oduor.

Kenya Commercial Bank, Equity Bank, Safaricom, Bamburi and Centum were the market bulls or big price gainers, while Uchumi Supermarkets led the pack of bears or those that recorded price losses.

Kestrel Capital markets analyst Kuria Kamau said company earnings powered share price appreciation, especially in banking and telecommunication sectors where profitability was high.

ABC Capital Head of Corporate Finance and Advisory Johnson Nderi said during the period, performance of the bourse was supported by high demand of securities. “Had it not been for the General Election, you would have seen a much more robust market,” he said.

Last Thursday, the bourse recorded its best trading day since January as turnover touched the Sh3.1 trillion mark on a volume of 90 million shares.

Equity Bank, Safaricom, Bamburi, NSE and Cooperative Bank were the top movers of the day to account for 98 per cent of the total volume, moving 69 million, 14 million, 1.6 million, 1.2 million and 860,000 shares respectively.

Yesterday, the market opened the week with 9.4 million shares valued at Sh234 million, against 44 million shares valued at Sh952 million posted on Friday. The banking sector was the most active accounting for 34.31 per cent of the day’s activity with shares worth Sh80 million traded.

The post Stock market bulls and bears appeared first on Mediamax Network Limited.

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