Positive Growth Prospects for Kenyan Economy

Tuesday’s trading was characterized by a decline in market indices and market capitalization. The NSE All share index declined 0.34% to close at 142.93 points while the NSE-20 index followed suit, recording a 0.49% slide to close at 4064.16 points. Market Capitalization declined by 0.35% to perch at KES 2,010.48 billion whilst equity turnover dipped by 77.27% to close at KES 0.101 billion.  Market breadth, a measure of the market performance indicated that the market conditions had deteriorated; with the number of stocks that declined, 19, outweighing the number of stocks that advanced, 10.

A recent World Bank report delineates that Kenya’s economic growth may possibly be the highest in sub Saharan Africa over the next 15 years. The half year report indicates that Kenya’s growth should remain robust at around 6.2% until 2030 and most outstandingly above that of many other African economies who are likely to suffer from China’s economic slowdown and restructuring.

However, in the short term, Tanzania and Rwanda are set to see advanced growth at over 7% of GDP. Constraints also cited in the report include; widening public sector deficits, growing debt levels and the continuing decline in commodity prices.

Equity Market Highlights

Equity Group Holdings Ltd (NSE: EQTY) was the most actively traded stock accounting for 39.67% of the total market activity. ARM Cement Ltd (NSE: ARM) closed in second, accounting for 38.23% of the days traded value.

Nairobi Securities Exchange Ltd (NSE: NSE) capped the gainers’ chart with a price appreciation of 3.66% to close the day at KES 21.25. E.A. Cables Ltd (NSE: CABL) climbed up 3.55%, to close the day as the second best gainer at KES 10.80.

Olympia Capital Holdings Ltd (NSE: OCH) was the top laggard of the day, declining by 10.00% to KES 4.50. Liberty Kenya Holdings Ltd (NSE: CFCI) trailed behind, sliding by 9.52% to KES 19.00.