Ten stocks making NSE investors rich
Equity Bank, KCB Group, East Africa Breweries Limited (EABL), Cooperative Bank, Absa led five stocks whose increase in investor wealth at the Nairobi Securities Exchange (NSE) since the start of the year surpassed the remaining 50 companies.
Other five companies whose investor wealth increase are Standard Chartered Bank, BAT, NCBA, and I&M Bank.
The NSE top 10 companies held 89.94 percent of the total market capitalization, led by Safaricom that controlled almost 60 percent.
All this companies, according to the recent data by the Capital Markets Authority accounted for Ksh.2.5 trillion of the total market capitalization.
In six months to January this year,
BAT Kenya , EABL and Safaricom led top five stocks on the bourse havig recorded a combined gain of Ksh.334 billion, representing 107.7 per cent of the Ksh.310 billion appreciation of all shares at the NSE.
This is exposing the distortion of the bourse’s performance by the blue-chip stocks, which is making it difficult for investors to gauge the performance of the NSE.
The NSE seems to be on a bull run and fully recovered from the effects of Covid-19, as investors bank on a rollout of coronavirus vaccines to keep the global economic recovery on track.
This even as investors at the Nairobi bourse saw their wealth swell to highs of Ksh.630 billion in the third quarter of this year, according to CMA.
The performance resonates the recovery efforts from the ravages of the coronavirus pandemic where the market capitalization at the bourse rose to Ksh.2.778 trillion compared to Ksh.2.148 trillion during the same period in 2020.
Nevertheless, the shareholders’ paper wealth grew by Ksh.76.5 billion on a quarter-to-quarter basis. This increase translates to a 2.83 percent growth compared to a market capitalization of Ksh.2.702 trillion in Q2.
The NSE All-Share Indices at the Nairobi bourse rose by 5.38 percent and 2.75 percent, respectively in Q3. The two recorded 2.031.27 points and 178.31 points respectively at the end of the quarter.
The bond market turnover, on the other hand, also grew by 11.01 percent during the period under review thanks to the Ksh.301.10 billion worth of bonds traded.
The equity turnover at the NSE performed poorly recording Ksh.31.36 billion in Q3 compared to Ksh.37.99 billion in the previous quarter. This was as a result of reduced trading activity during the third quarter.
Traded shares dropped 13.93 percent to 946.48 million in the quarter compared to 1,099.65 million in Q2.
The derivatives market registered a 34.6 percent drop in the volumes traded to close the quarter at 2,115 contracts compared to 3,234 contracts traded in Q2 2021.
Similarly, the turnover closed the quarter at 78.52 million, a 42.29 percent decrease from 136.07 million recorded in Quarter 2.
As of June 30, 2021, the total assets under management by the CIS were Ksh.117.77 billion, a 6.08 percent rise from Ksh.111.09 billion managed in the quarter ended March 31, 2020.
At Ksh.47.29 billion, CIC Unit Trust Scheme led the pack with the largest portion with NCBA Unit Trust Scheme following suit by managing Ksh.14.81 billion in the same period.
Nabo Capital recorded the highest increment of 37.52 percent recording Ksh.2.4 billion as of June 30, 2021, up from the 1Ksh..78 billion registered in the previous quarter.
Amana Unit Trust funds recorded the highest decline of funds managed by 40.35 percent to report Ksh.45 million in Q2 from Ksh.75.6 billion in Q1.
During the period under review, CMA approved the application by Nairobi Business Ventures Ltd to issue a Shareholder’s Circular about proposed investments in Air Direct portfolios.
The regulator also gave a nod to an application by African Diaspora Asset Managers Limited relating to the registration of the ADAM Unit Trust Fund comprising of the Adam Equities Fund, Adam Money Market Fund, Adam Balanced Fund, and Adam Fixed Income Fund.
The regulator agreed to the application by East African Breweries Limited for the establishment of a MediumTerm Note Programme of up to Ksh.11 billion and listing of all the issued notes on the NSE.