Money Markets
Nairobi bourse ranked world’s third best performer
The market’s all-share index, NSE ASI, rose by more than a fifth in the first half of the year, making the Nairobi bourse the third best performing stock market worldwide after the Venezuela and Egypt exchanges, according to Bloomberg – a global markets data service. Photo/File
Posted Thursday, June 28 2012 at 22:31
There are others who choose to buy specific shares so long as they have been included in the indices particularly if the index is available on international platforms such as the FTSE 15 and FTSE 25 which were launched at the NSE last year.
Mr Njiru said that international funds may be buying particular shares which are included in some particular Kenyan indices thus creating a demand that drives up the price.
“Remember that FTSE Indices were launched last year and I suspect there are funds out there that are buying the underlying stocks,” he said adding that investing to mimic the performance of indices could be the next thing for Kenyan investors as the markets develop.
Kenya’s NSE ASI, which has been the third best performing worldwide according to Bloomberg, contains all shares that are on the Main Investments Market Segment or Alternative Investment Market Segments.
The top five constituent shares of the FTSE 15 and FTSE 25 are East African Breweries (EABL), Kenya Commercial Bank (KCB) and Equity Bank which have gained more than 20 per cent since the year began and Barclays and Safaricom which have some of the highest dividend yields at the Nairobi bourse.
EABL, KCB and Equity Bank were up 29.65, 36.5 and 29.57 per cent respectively as at the close of business on Thursday.
Uchumi Supermarkets, which earlier this year replaced CMC Motors on the NSE 20 Share Index had risen by 107.79 per cent to close at Sh16 on Thursday although its highest point this year has been above Sh19.
Standard Chartered Bank,Pan African Insurance, KenolKobil and Athi River Mining on Thursday closed at Sh200, Sh33.25, Sh14.30 and Sh200 meaning that their prices are up by 25, 60.24, 43.72 and 26.58 per cent up respectively from their closing price at the end of last year.
Peter Mwangi, chief executive officer at the NSE earlier this month told Business Daily that going forward market activity will be driven by the direction of interest rates, inflation and how fast the country transits to the new political dispensation under the new constitution.
He said that foreign investor sentiment will also be influenced by the direction of the eurozone economies.
dmugwe@ke.nationmedia.com
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