The Nairobi Securities Exchange (NSE) 20-Share index has risen to 4219.49 points with analysts predicting it could touch the 4,300 points mark. Photo/FILE
Safaricom’s share touched a three-year high of Sh5.45, as price increases of key stock at the bourse has pushed market valuation to over Sh1.3 trillion.
The last time the mobile telecommunication firm’s share price touched this level was in October 2008.
The Nairobi Securities Exchange (NSE) 20-Share index has risen to 4219.49 points with analysts predicting it could touch the 4,300 points mark, a level last seen in February 2011.
The latest market surge is driven by the prices of a handful of blue chip stocks that have touched 52-week highs.
The share price increases saw market capitalisation rise to Sh1.308 trillion. Despite being only two weeks into trading this year, the bourse has picked up a rally as investors remain bullish with the General Election less than two months away.
Jubilee’s share price hit its 52-week high at Sh198, Standard Chartered at Sh240, BAT Kenya at Sh506 while KCB achieved the same at Sh31.50 per share.
BAT Kenya and Safaricom which continued their steady rise had set a 52-week high a week ago, which has now been surpassed. BAT Kenya’s share price rose to Sh504, which was then a 52-week high, similar to Safaricom’s Sh5.35.
The shares join Bamburi Cement and East African Breweries Limited (EABL) as shares which hit 52-week highs last week. Foreign investors continued to be the main buyers on the stocks and therefore pushing up prices.
Alistair Gould, the head of trading and business development at Old Mutual Securities, said that foreign investors are optimistic that the NSE’s stellar performance of 2012 will continue especially after the General Election.
The NSE 20-Share index gained 28.95 per cent in 2012, closing at 4,133.02 points from 3,205.02 points in 2011.
Bargain hunters are also on the prowl for low valuations, added Mr Gould.
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