Kenya’s equity market performance remained positive in January due to continued participation by local investors despite foreign investors assuming a net selling position. This is according to a report from regional financial services provider, Old Mutual Investments.
The analysis follows a prolonged election in the East African country that prompted foreign investors to adopt a ‘wait and see’ approach in regard to Kenya’s equity markets.
Equity markets are the meeting point for buyers and sellers of stocks.
Old Mutual analysts this week revealed that the country’s equity market was on an upward trend in the month with the Nairobi Securities Exchange (NSE) 20 and All Share Index rising by 0.7% and 5.5% respectively, mainly driven by positive performance of banking and telecommunication stocks.
The NSE 20 share Index is a price weighted Index calculated as a mean of the top 20 best performing counter. The index is used to track the performance of the NSE equities market.
“We still believe that positive investor sentiment and improved consumer spend driven by the anticipated economic rebound in 2018 should support equity prices as it will boost corporate earnings growth in 2018 relative to 2017,” Old Mutual researchers explained in a statement issued on February 12th, 2018.
“We continue to monitor the equities market as banks release their full year results in February. Our investments in Treasury bonds provided positive returns for the unit trust portfolio during the month of January and continued to add value for unit holders,” said the analysts.
The Nairobi Securities Exchange is a leading African Exchange based in Kenya. The Exchange plays a vital role in the growth of Kenya’s economy by encouraging savings and investment, as well as helping local and international companies access cost-effective capital.