NSE Gets Into A Bullish Mood As 8 Counters Touch New Highs

NSE(Nairobi Securities Exchange) activity is on an aggressive momentum, led by banking and agriculture-sector counters, with firms such as Equity Group Plc leveraging on the current upward movement at the bourse, closing the day Wednesday 2^nd September with a share price above KSh 100 for the first time.

NSE Data shows that Equity gained 3.95 to KSh 104.50 with 11.14 million shares traded and a turnover of KSh 1.11 billion, valuing Equity Group at KSh 377 billion. The counter has now risen 49.8% since the year begun and 78.6% over the past 12 months.

Eight NSE-listed stocks touched fresh 52-week highs on September 2, led by Equity Group at KSh 104.50 and KCB at KSh 101.00, both crossing KSh 100 for the first time.

NSE New 52-Week Highs:

• EQTY: KSh 104.50 or 49.81% year-to-date
• KCB: KSh 101.00 or 50.95% year-to date
• KEGN; KSh 12.35 or 30.17% year-to-date
• KPLC: KSh 25.00 equal to 76.84% increase year-to-date
• KNRE: KSh 4.65, a 53.82% year-to-date rise
• NSE: KSh29.50, a 38.27% rise year-to-date
• AMAC: KSh195.00, a 50% rise year-to-date
• UNGA: KSh 50.00, up 103.23% year-to-date

Market watchers attribute the current strong price rally at the NSE to several factors.

“Market sentiment is currently very positive, and when confidence is high, greed naturally comes into play. Investors become more willing to pay higher prices, expecting further upside,” said CFA Dedan Maina.

He told Business Today that Institutional investors and other sophisticated participants are actively trading around these price movements, creating liquidity and momentum. The increased activity by fund managers and other market participants is also creating more trading opportunities.

Investors are also positioning to reap from the dividends cycle. As book closures approach, investors positioning for dividends are accumulating counters that still offer attractive risk-adjusted dividend returns. This creates additional demand, particularly in fundamentally strong dividend-paying companies.

He said book closures are one of the catalysts within an already bullish market environment.

Positive sentiment, institutional activity and dividend-driven accumulation are currently working together. More importantly, some of the price appreciation is being driven by expectations and positioning, not necessarily by a corresponding change in fundamentals. That’s why we still need to distinguish between fundamental value and the price investors are currently willing to pay for that value,” said Maina.