Investor wealth at the Nairobi Securities Exchange (NSE) on Thursday rose by the biggest single-day margin in eight months at Sh38.6 billion on the back of gains on Safaricom and large banks.
The NSE’s market capitalisation, or investor wealth, stood at Sh1.563 trillion at the close of trading on Thursday compared to Sh1.524 trillion on Wednesday, with Safaricom accounting for just under half of the day’s gain at Sh16.02 billion after its share rose by 2.7 percent or Sh0.40 to close at Sh15.
The telco, which is the biggest listed company by market capitalisation at the bourse at Sh600.98 billion, dominated trading, accounting for 90 percent (or Sh636.3 million) of the day’s traded turnover of Sh704.31 million.
Safaricom moved 42.42 million shares, which represented 92 percent of the 45.97 million units traded overall at the NSE in the session.
The gain on the stock came a day ahead of the company’s book closure on a Sh0.55 per share interim dividend in respect of the financial year ending March 2024. The payout, which was announced on February 22 will be made on March 31.
“Safaricom was the most traded counter on the day …with net foreign inflows amounting to Sh2.6 million,” said investment bank Genghis Capital in a market note on Thursday.
Large banks saw price gains as investors continued to buy their shares in anticipation of improved dividend payments for the 2023 financial year.
Equity Group led the segment with a market cap gain of Sh5.28 billion after its share price rose by 3.4 percent to Sh41.60.
Others with valuation gains above Sh1 billion included Absa Kenya at Sh3.8 billion, KCB Group (Sh3.53 billion), Co-op Bank of Kenya (Sh2.93 billion), NCBA Group (Sh2.55 billion) and Stanbic Holdings (Sh1.88 billion).
