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Local Investors Fuel Positive Momentum In Kenyan Market Despite Lower Turnover

BY Steve Biko Wafula · February 20, 2024 08:02 am

KEY POINTS

Kenya Power emerged as a top mover with a turnover of KES 4.1 million and witnessed the highest single-day rally of 8.2% since November 9, 2022, closing at KES 1.71. This remarkable gain positioned Kenya Power as the day's top performer, whereas Uchumi led the downturn, with its share price plummeting by 10.0% to KES 0.18.

On Monday, the Kenyan stock market exhibited a positive trend, with both the Nairobi Securities Exchange All-Share Index (NASI) and the N10 Index appreciating by 0.9%.

This bullish sentiment was echoed in the NSE 20 and NSE 25, which saw increases of 0.4% and 0.8% respectively. Despite the overall market upturn, there was a significant decline in equity turnover, which dropped by 66.0% to USD 0.4 million.

However, local investors were undeterred, stepping up to dominate trading activities as they contributed to 52.1% of market participation, a notable rise from 24.5% in the previous session.

Read Also: The Significance of Stock Market Education And the Impact Of Foreign Investors On The NSE

Equity Group continued to be a significant driver in the market, accounting for approximately 54.4% of the total market activity. The financial giant has been on an upward trajectory for seven consecutive sessions, closing at KES 38.35—a high not seen since September 7, 2023.

Other noteworthy performers included Safaricom with a 2.3% gain, ABSA Bank Kenya, and KCB Group with increases of 0.8% and 1.3%, respectively. Contrarily, Co-op Bank experienced a slight decrease of 0.4%.

Surprisingly, Kenya Power emerged as a top mover with a turnover of KES 4.1 million and witnessed the highest single-day rally of 8.2% since November 9, 2022, closing at KES 1.71. This remarkable gain positioned Kenya Power as the day’s top performer, whereas Uchumi led the downturn, with its share price plummeting by 10.0% to KES 0.18.

Foreign investor sentiment shifted towards optimism, indicated by net inflows totaling USD 57.3K. Safaricom was at the forefront of the sell-off, while Equity Group attracted the bulk of foreign purchases.

Stock Market

Projection for Tomorrow’s Trading:

Given today’s robust local participation and the sustained gains in key counters like Equity Group and Kenya Power, it’s reasonable to anticipate a steady market with the potential for continued local support. However, the recent decrease in equity turnover suggests a cautious approach from investors.

With foreign investors exhibiting a bullish stance, their net inflows could provide additional support to the market, potentially leading to selective gains in blue-chip stocks. Caution is warranted regarding counters like Uchumi, which may continue to face selling pressure. Overall, the market’s direction may hinge on local investor sentiment, which has proven pivotal in the current session.

Read Also: Kenyan Stock Market Sees Mixed Trends Amidst Equity Turnover Surge and Umeme’s Financial Alert

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

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