INVESTORS at the Nairobi Securities Exchange gained a massive Sh100 billion in
paper wealth on Friday, reflecting sustained interest
in some stocks with strong upside potential.
Market analysts reported that market jitters continued to ease after a two-week ceasefire was reached between the US,
Israel, and Iran.
Data from the Bbourse shows that total
market capitalisation rose by 3.5 per cent to Sh3.41 trillion compared to Sh3.3
trillion the previous week, supported
by gains in stocks such as Cooperative Bank, Equity Group, KCB Group, and
Safaricom Plc.
These counters
recorded positive price movements of 2.5, 2.4, 1.1, and 0.5 per cent, respectively,
lifting the companies’ market value.
Co-operative Bank’s share price hit a
record high of 30.90 during the week, and was among the top five biggest movers
with a volume of 1.4 million shares.
The lender’s dividends declared since 2008 stand
at Sh87.5 billion, over three times its valuation of Sh27.9 billion when listed
at the Nairobi bourse.
The bank began the year with a share price
of Sh23.95 and has since gained 29 per cent on that price valuation, ranking it
11th on the NSE in terms of year-to-date performance.
Kenya Airways, Equity Bank, Kenya Re and
Kenya Pipeline were the other biggest movers for the week, with the national
carrier’s share gaining three per cent, buoyed by speculation about the planned
capital injection by a new investor.
Nevertheless, the market was weighed down
by large-cap stocks such as Diamond Trust Bank, BK Group, British American
Tobacco Kenya and ABSA Bank, which lost 0.8, 0.7, 0.5, and 0.3 per cent, respectively.
Foreign investors remained net sellers,
recording net outflows of Sh534.73 million, compared with Sh361.68 million in
the previous session.
Generally, the Nairobi bourse reported
improved activities, with the NASI, NSE 25 and NSE 20 share price indices
increased by 3.28, 3.45 and 2.89 per cent, respectively, during the week ending
April 9, 2026.
Bond turnover in the domestic secondary
market decreased by 45.15 per cent during the week, dropping further to Sh35
billion from Sh65 billion the previous week.
In the money market, the Treasury bill
auction of April 9 received bids totalling Sh24.6 billion against an
advertised amount of Sh24 billion, representing a performance of 102.3 per cent.
Interest rate on the 182-day and 364-day
Treasury bills declined marginally, while interest rate on the 91-day Treasury
Bill remained unchanged.
This is a massive improvement compared to
the previous three weeks, when the short-term state securities were grossly
undersubscribed.
The improvement has been attributed to the softening
monetary policy that saw the Central Bank retain the base lending rate for the
first time in 10 years.
The Monetary Policy Committee (MPC) decided
to maintain the Central Bank Rate (CBR) at 8.75 per cent during its meeting
held on April 8, 2026.
The MPC observed that the conflict in the
Middle East has disrupted global supply chains, leading to significantly higher
energy prices.
Despite expected upward pressure from
higher energy prices, CBK expects Kenya’s overall inflation to remain below the
midpoint of the target range in the near term.
Central banks in the major economies have
kept their policy rates unchanged as they assess the impact of the conflict in the
Middle East on their inflation and growth outlooks
