Capital Markets

Analysts upbeat about returns in the stock market

The Nairobi Securities Exchange. Research and risk analysts Stratlink expect equities to emerge the top performing asset class in 2013. FILE
The Nairobi Securities Exchange. Research and risk analysts Stratlink expect equities to emerge the top performing asset class in 2013. FILE  NATION MEDIA GROUP

Investors are now placing big bets on the Nairobi Securities Exchange (NSE) in the hunt for the best-yielding investments as returns from other asset classes shrink.

The bourse has held on to its position of the best investment channel, with a year-to-date return of 12 per cent. The returns had fallen 8 percentage points from 20.9 per cent of end of May.

If the trend is maintained, as analysts forecast, pension funds, insurers and other capital investors should report good gains at year end.

Other assets have seen their returns dip in the last few months, with Treasury bonds and bills yields dropping to as low as five per cent from the average of 12 per cent at the beginning of the year.