This archive report was first published on 16 July 2021.
Nairobi, Kenya - July 16, 2021
The Nairobi Securities Exchange (NSE) has hit a 39-month high, with investors' wealth increasing by Sh101.6 billion in the last one month, driven by a rally in Safaricom and Equity Bank stocks.
The market capitalisation of the NSE closed at Sh2.785 trillion on July 15, 2021, its highest level since April 16, 2018, when it was Sh2.794 trillion.
Safaricom and Equity Bank stocks have been the main drivers of the NSE's gain, adding Sh54.09 billion and Sh14.34 billion respectively between May 18 and July 15, 2021.
Analysts attribute the market gain to sustained recovery of business performance across sectors, dividend announcements and payouts, and sealing of strategic transactions.
Churchill Ogutu, a senior research analyst at Genghis Capital, said that Safaricom's stock is benefiting from the news of its entry into the Ethiopian market and the registration of a local company in the country.
He added that investors see Sh43 as Safaricom's stock's resistance level, but the Ethiopia news has sustained it at these highs.
The NSE has now cumulatively added Sh449.17 billion since January, with 31 stocks having added wealth to investors.
