Investor wealth on the Nairobi Securities Exchange (NSE) increased by Ksh419.5 billion in the 10 months to October 2024, as confidence in investors, particularly domestically, returned and the economy continued to rise.
capital markets showed that investors’ wealth grew by 29.2% to Ksh1.9 trillion by the end of October from Ksh1.4 trillion at the beginning of the year.
Markets are on the rise; the NSE All Share Index (NASI) rose by 28.9% to 118.73 points in the 10 months to October. The massive growth in the capital market as a whole saw its benchmark index (NSE 20 share index) rise by 28% in the same period.
The energy and oil sector saw the highest revenue return with an average increase of 53.5% since the beginning of the year, driven by big gains from Kenya Power and KenGen.
Companies remained stable with an average increase of 26.7%, while only BK Group ended October with a negative 7.5% YoY gain. The acquisitions of Bamburi Cement and East African Portland Cement brought the NSE construction average to 45.8%.
In October alone, the market value of all companies listed on the NSE increased by KSh182.3 billion. However, the total value of the equity market fell by 1.6% to KSh4.91 billion in October from KSh4.99 billion in September. Foreign investors were the biggest sellers with revenues of KSh569.9 million in the month, reversing the KSh28.6 million purchases recorded in September.
According to a report by the Capital Markets Authority, the size of investments by foreign investors in the Nairobi Stock Exchange decreased, with investors investing 8,520 at the end of September, compared to 8,549 at the end of June 2024 and 8,614 at the end of 2024.
The country’s economic development and improved income have boosted business confidence, leading to higher commodity prices in 2024.
In the 10 months to October, 34 stocks rose, while 23 stocks rebounded from their 2023 lows. According to AIB AXYS Africa, the market’s price-earnings ratio rose to 11.2 times from 8.5 times at the beginning of the year, reflecting improvements in capital gains and income.
