The Nairobi Securities
Exchange has extended its strong 2026 rally, with investor wealth
climbing to a record high as gains in blue-chip stocks, new listings and major
corporate transactions continue to lift the market.
Four of the exchange's
five key equity indices closed at fresh all-time highs in the week ended July
3, underscoring growing investor confidence in Kenya's capital markets despite
a challenging global economic environment.
Total market
capitalisation rose to a historic Sh3.8 trillion, representing a 28 per cent
increase since the beginning of the year.
The rally has added
hundreds of billions of shillings in paper wealth for investors and reflects
renewed appetite for listed equities after several years of subdued market
performance.
The benchmark NSE All
Share Index (NASI) climbed to a record 222.42 points, extending its
year-to-date gain to 19.21 per cent.
The NSE 25 Share Index hit a new high of
6,184.12, up 21.34 per cent this year, while the NSE 10 Share Index advanced to
a record 2,387.47 points, posting a 21.49 per cent gain.
Weekly performance was
equally impressive, with the NASI, NSE 25 and NSE 20 indices rising by 3.08 per
cent, 3.38 per cent and 2.69 per cent, respectively.
The market's latest
gains were largely driven by banking heavyweight Equity Group, whose shares
have continued to rally following its record Sh21.7 billion dividend payout,
equivalent to Sh5.75 per share.
The distribution,
announced a fortnight ago, represented a 35.5 per cent increase from the
previous year and reinforced investor confidence in the lender's earnings
outlook.
Equity's share price
gained 2.96 per cent during the week to close at Sh87. Since the start of the
year, the stock has appreciated by 30.3 per cent from Sh66.75, making it one of
the exchange's top-performing blue-chip counters.
Safaricom also
remained a major driver of market activity following the completion of Vodacom
Group's acquisition of an additional 20 per cent stake in the
telecommunications giant.
The landmark $2.1
billion (about Sh272 billion) transaction raised Vodacom's ownership to 55 per
cent after years of legal disputes.
The deal significantly
boosted trading volumes and renewed foreign investor interest in Kenya's
largest listed company.
Safaricom closed the
week at Sh34.20, up 0.4 per cent, and has gained 20.6 per cent since the
beginning of the year.
The recent listing of
Family Bank has further broadened the market and contributed to the rise in
overall market capitalisation, while smaller counters also attracted investor
interest.
Carbacid emerged among the week's top gainers,
rising to Sh35.10 from Sh33.10.
Trading activity
surged sharply during the week, with the number of shares traded increasing by
3,572.43 per cent while equity turnover jumped by 2,694.98 per cent, reflecting
heightened investor participation.
However, secondary bond market turnover eased
to Sh58 billion from Sh75 billion recorded a week earlier.
The positive momentum
in equities comes as investors continue to monitor developments in the
fixed-income market.
The July 2 Treasury
bill auction attracted bids worth Sh35.2 billion against the government's offer
of Sh24 billion, translating to an oversubscription rate of 146.6 per cent.
Yields on the 91-day, 182-day and 364-day
Treasury bills edged higher for the sixth consecutive week, signalling
sustained demand for government securities even as equities continue to deliver
robust returns.
The simultaneous
strength in both the equity and fixed-income markets highlights improving
liquidity, growing investor confidence and a capital market increasingly
positioned to support Kenya's economic recovery and corporate fundraising
ambitions.
