This archive report was first published on 8 November 2019.
The Nairobi Securities Exchange (NSE) market capitalisation hit a 14-month high on November 7, 2019, driven by a rally in Safaricom and banking stocks.
According to data, the NSE market capitalisation closed at Sh2.527 trillion on November 7, 2019, the highest level since August 14, 2018.
The rally has seen investors gain more than Sh300 billion in paper wealth over the past month, with those holding Safaricom and banking stocks emerging as key beneficiaries.
Safaricom's share price touched a 20-month high of Sh31.20, up from Sh30.70 on November 6, 2019, adding Sh20 billion to the wealth of Safaricom owners.
Senior investment analyst Faith Mwangi noted that the excitement about the banking stocks was cooling off, following President Uhuru Kenyatta's memo to have a cap on commercial lending rates removed, which was passed in Parliament on November 5, 2019.
However, analysts reckon that Safaricom has headroom to rise further, citing its recent financial report and outlook, which showed a 14.4 percent jump in half-year net profit to Sh35.65 billion.
AIB Capital head of research Sarah Wanga said investors were buying into Safaricom on the back of its recent financial report and outlook, with the upside potential of the share at about Sh33.
