NCBA Bank Among Top Stocks on the Nairobi Stock Exchange To Buy Today

KEY POINTS
The NSE is a vibrant and dynamic market that offers investors a variety of opportunities to invest in different sectors and diversify their portfolios. The NSE offers a range of products and services, such as equities, derivatives, debt, exchange-traded funds, index funds, mutual funds, and corporate bonds.
KEY TAKEAWAYS
The NSE is not just a stock exchange, but an investment hub and the heartbeat of the economy. It reflects the aspirations and potential of a nation that is on the rise. By investing in the NSE, investors can be part of this exciting journey and contribute to the financial well-being of themselves and others.
The Nairobi Stock Exchange (NSE) is a leading African exchange, based in Kenya, that offers an automated platform for listing and trading securities. The NSE has a six-decade heritage in listed equity and debt securities and has been one of the best-performing markets in Africa in recent years1.
However, the NSE has also faced some challenges due to the Covid-19 pandemic, political uncertainty, currency volatility, tax policy changes, and inept and lazy management. In this article, Soko Directory will look at some of the top stocks on the NSE that have strong fundamentals, attractive valuations, and promising future prospects. We will also examine the impact of the proposed tax proposals on the NSE and its listed companies.
Related Content: Don’t Choose Stocks, Choose Companies
Best-performing stocks in the NSE in 2022
According to a report by Mystocks.co.ke, the following are some of the best-performing stocks in the NSE in 2022 based on their year-to-date (YTD) returns as of March 27, 2023:
These stocks have outperformed the NSE All Share Index (NASI), which has declined by 2.17% YTD, and the NSE 20 Share Index (NSE20), which has dropped by 9.87% YTD.
Factors to consider when buying stocks on the NSE
While past performance is not a guarantee of future results, it can indicate some of the strengths and weaknesses of a company. However, investors should also consider other factors when buying stocks on the NSE, such as:
- Fundamentals: This refers to the financial health and growth potential of a company based on its income statement, balance sheet, and cash flow statement. Some of the key indicators to look at include earnings per share (EPS), return on equity (ROE), dividend yield, the price-to-earnings ratio (P/E), debt-to-equity ratio (D/E), and free cash flow (FCF).
- Market trends: This refers to the direction and momentum of the overall market or a specific sector or industry. Some of the factors that influence market trends include economic data, consumer sentiment, political events, global developments, and technological innovations.
- Future prospects: This refers to the expected performance and outlook of a company based on its competitive advantage, growth strategy, innovation capability, and market opportunities. Some of the sources of information for future prospects include company reports, analyst ratings, industry reports, and news articles.
Related Content: How To Start Buying GoK Bonds, Investing In Stocks, And Building Emergency Funds
Impact of the proposed tax proposals on the NSE and its listed companies
The Tax Laws (Amendment) Act, 2020 introduced some changes that affect the NSE and its listed companies. Some of these changes include:
- Scrapping of preferential tax treatment for new issuers: The Treasury scrapped the preferential tax treatment of between 20% to 27.5% that was enjoyed by new issuers for up to five years depending on how much stake they offered to the public. The tax was then set at a flat rate of 25%, lowering the incentive for a company to offer a higher stake to the public when joining the NSE.
- Introduction of VAT on brokerage services: The Treasury also introduced a 14% VAT on brokerage services revenue. Stockbrokers warned that this will make investing in shares and bonds expensive as they will pass on the cost to investors. This may lead to reduced liquidity and activity in the stock market as investors search for other places to earn higher returns.
- Removal of withholding tax on interest earned from infrastructure and green bonds: The Treasury had initially proposed to introduce a 10% withholding tax on interest earned from infrastructure and green bonds but this was dropped after lobbying from stakeholders. This is a positive development for investors who want to invest in these bonds that offer tax-free returns4.
The NSE is a vibrant and dynamic market that offers investors a variety of opportunities to invest in different sectors and diversify their portfolios. The NSE offers a range of products and services, such as equities, derivatives, debt, exchange-traded funds, index funds, mutual funds, and corporate bonds. The NSE also provides a platform for raising capital, enhancing corporate governance, promoting financial inclusion, and supporting economic development.
Related Content: The Top 10 Investment Opportunities In 2023
However, investors should also be aware of the risks and challenges that the NSE faces, such as market volatility, regulatory changes, competition from other exchanges, and technological disruptions. The NSE is constantly innovating and adapting to meet the changing needs and expectations of its stakeholders. The NSE is also expanding its global presence and partnerships to increase its visibility and influence.
The NSE is not just a stock exchange, but an investment hub and the heartbeat of the economy. It reflects the aspirations and potential of a nation that is on the rise. By investing in the NSE, investors can be part of this exciting journey and contribute to the financial well-being of themselves and others.
About Steve Biko Wafula
Steve Biko is the CEO OF Soko Directory and the founder of Hidalgo Group of Companies. Steve is currently developing his career in law, finance, entrepreneurship and digital consultancy; and has been implementing consultancy assignments for client organizations comprising of trainings besides capacity building in entrepreneurial matters. He can be reached on: +254 20 510 1124 or Email: info@sokodirectory.com
- January 2025 (118)
- February 2025 (69)
- January 2024 (238)
- February 2024 (227)
- March 2024 (190)
- April 2024 (133)
- May 2024 (157)
- June 2024 (145)
- July 2024 (136)
- August 2024 (154)
- September 2024 (212)
- October 2024 (255)
- November 2024 (196)
- December 2024 (143)
- January 2023 (182)
- February 2023 (203)
- March 2023 (322)
- April 2023 (298)
- May 2023 (268)
- June 2023 (214)
- July 2023 (212)
- August 2023 (257)
- September 2023 (237)
- October 2023 (264)
- November 2023 (286)
- December 2023 (177)
- January 2022 (293)
- February 2022 (329)
- March 2022 (358)
- April 2022 (292)
- May 2022 (271)
- June 2022 (232)
- July 2022 (278)
- August 2022 (253)
- September 2022 (246)
- October 2022 (196)
- November 2022 (232)
- December 2022 (167)
- January 2021 (182)
- February 2021 (227)
- March 2021 (325)
- April 2021 (259)
- May 2021 (285)
- June 2021 (272)
- July 2021 (277)
- August 2021 (232)
- September 2021 (271)
- October 2021 (304)
- November 2021 (364)
- December 2021 (249)
- January 2020 (272)
- February 2020 (310)
- March 2020 (390)
- April 2020 (321)
- May 2020 (335)
- June 2020 (327)
- July 2020 (333)
- August 2020 (276)
- September 2020 (214)
- October 2020 (233)
- November 2020 (242)
- December 2020 (187)
- January 2019 (251)
- February 2019 (215)
- March 2019 (283)
- April 2019 (254)
- May 2019 (269)
- June 2019 (249)
- July 2019 (335)
- August 2019 (293)
- September 2019 (306)
- October 2019 (313)
- November 2019 (362)
- December 2019 (318)
- January 2018 (291)
- February 2018 (213)
- March 2018 (275)
- April 2018 (223)
- May 2018 (235)
- June 2018 (176)
- July 2018 (256)
- August 2018 (247)
- September 2018 (255)
- October 2018 (282)
- November 2018 (282)
- December 2018 (184)
- January 2017 (183)
- February 2017 (194)
- March 2017 (207)
- April 2017 (104)
- May 2017 (169)
- June 2017 (205)
- July 2017 (189)
- August 2017 (195)
- September 2017 (186)
- October 2017 (235)
- November 2017 (253)
- December 2017 (266)
- January 2016 (164)
- February 2016 (165)
- March 2016 (189)
- April 2016 (143)
- May 2016 (245)
- June 2016 (182)
- July 2016 (271)
- August 2016 (247)
- September 2016 (233)
- October 2016 (191)
- November 2016 (243)
- December 2016 (153)
- January 2015 (1)
- February 2015 (4)
- March 2015 (164)
- April 2015 (107)
- May 2015 (116)
- June 2015 (119)
- July 2015 (145)
- August 2015 (157)
- September 2015 (186)
- October 2015 (169)
- November 2015 (173)
- December 2015 (205)
- March 2014 (2)
- March 2013 (10)
- June 2013 (1)
- March 2012 (7)
- April 2012 (15)
- May 2012 (1)
- July 2012 (1)
- August 2012 (4)
- October 2012 (2)
- November 2012 (2)
- December 2012 (1)