The Nairobi Securities Exchange All Share Index (NASI), which measures the market’s overall capitalization, rose 2.83 points at the close of trading on Wednesday, climbing to a new all-time high of 178.04, an annual gain of 44.2%. This is a market cap weighted index consisting of all the securities on the NSE.
This index, which was introduced in 2008, tracks the NSE’s overall market capitalization and not the price movements of select counters. The NASI last hit these levels in 2013, when it rose 42.21%. According to data from the bourse, the NSE 20 share index closed at 2,959.67, an increase of 45.61% while the NSE 25 Share Index was 4,555.90, up 56.35%.
Total shares traded amounted to 63,612,268.00, a decline of 3,652,986.00 while Equity turnover hit KSh 1,726,596,238.10, an increase of KSh 33,705,783.4. The question remains what is pushing up activity at the NSE while there are no major shifts in the fundamentals.
Market pundits attribute the ongoing brisk activity and the bull run at the NSE to increased speculative trades, investor sentiments while institutional investors are projecting dips in the coming polls and so leveraging the bull run to offset any future losses.
A case in point is the recent sharp surge in Sameer Africa’s share price, which has been attributed largely to market speculation and investor sentiments rather than fundamental profit growth. Even though Sameer half-year net profit for the period ended 30th June fell to KSh 86.67m from KSh 108.84m in H1 2024, investors have placed huge bets on future real estate cash flows rather than current earnings.
When trading at the NSE closed this Wednesday, Diamond Trust Bank was the top price gainer, ending at KSh 99.50, up 9.94% from the previous end price. DTB began the year with a share price of KSh 69.00 and has since gained 44.2% on that price.
The biggest movers at the NSE were led by Safaricom, which traded 30,116,891 shares. On Tuesday, the stock traded above KSh 30 for the first time since September 2022. Bonds turnover KSh 9,459,750,000 down from the previous KSh 15,719,300,000.00.
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