Both the equities and bond segments on Monday recorded massive gains as investors, mainly local, sought to cash in on rising stock prices and higher yields on the long-term securities.

wpid-nsetradingfloor2.jpgData from the market showed Tuesday that the NSE 20 Share Index went 0.5 percent up to close the day at 4,008.63 from 3,989.95 in the previous trading session.

The Nairobi All share Index (NASI) was up 0.04 percent to close that day at 145.6 from 145.55 last week.
Market capitalisation, which measures shareholders wealth, too surged albeit marginally, growing to 20.08 billion U.S. dollars from 20.07 billion dollars.

The growth gives shareholders hope as the index has remained low for the better part of this year, where it dropped from 25 billion dollars in January.

Market capitalisation hit a low of 18.5 billion dollars in October, meaning that investors at the bourse have gained over 1.5 billion dollars in about two months on their stocks.

Investors’ wealth depreciated by about 7 billion dollars this year mainly due to steep decline in the fall of prices of different stocks.

The decline in shareholders’ wealth was sharp in October, the month Kenya was facing high lending rates. During the month alone, investors lost 1.3 billion dollars as the bourse took in a beating for the 20th straight month.

On Monday, market turnover stood at 6.4 million dollars, up from 6.2 million dollars in the previous trading session.

Equity Bank, Safaricom, East African Breweries Limited (EABL), Kenya Commercial Bank (KCB) and Sasini were the top movers, accounting for 96 percent of the day’s total turnover.

Equity Bank moved stocks worth 4.4 million dollars, EABL 1.1 million dollars, KCB 274,509 dollars and Sasini 196,078 dollars.

However, most of the trading was done by local investors, whose participation stood at 75 percent against foreigner’s 25 percent. Last week, foreign investors’ participation stood at over 70 percent, an indication that the former are taking a break from the market.

Similarly, trading at the bond market on Monday swelled by 450 percent, with bonds worth 108 million dollars being traded, up from 20 million dollars the previous week.

Turnover in the secondary bonds market of the NSE has risen this month compared to November following improvement of liquidity and lower yields at the debt market.

So far, bonds worth over 216 million dollars have been traded, a rise from full month’s total of 186 million dollars recorded in November. Analysts expect trading at the bourse to continue swelling in 2016. Enditem

Source: Xinhua

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