The Lower Eastern Times Opening The Third Eye
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Investors’ wealth on Kenya’s Nairobi Securities Exchange (NSE) has risen by 48 percent over the past year, driven by a steady increase in the prices of blue-chip stocks.
According to market data released by the NSE on Wednesday, market capitalization, which reflects investors’ wealth, reached 2.07 trillion Kenyan shillings (around 15.98 billion U.S. dollars), the highest in two years. This represents an increase from 10.8 billion U.S. dollars in January 2024, the NSE reported.
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Significant stock price increases in sectors such as telecommunications, banking, insurance, and energy and petroleum have contributed to the rise in investors’ wealth.
Key market indices have also experienced strong gains.
The All Share index (NASI) closed at 131.73 on Wednesday, according to the NSE. This stock rally has made the NSE the top performer in terms of returns since 2010, as investor confidence continues to grow.
Analysts pointed out that the NSE has benefited from the Central Bank of Kenya’s decision to reduce its benchmark rate to 11.25 percent from 14 percent, which has encouraged investors to turn to the stock market for better returns.
In November 2024, the NSE added three more listed companies to the Morgan Stanley Capital International (MSCI) Frontier Markets Small Cap Index, with the exchange’s CEO, Frank Mwiti, emphasizing that this move would attract significant capital inflows to the NSE.
