Kenyan Investors Buy More from Foreigners as Market Value Gains KSh 3b on Christmas Eve
The Nairobi Securities Exchange (NSE) turnover surged to KSh 145.76 million on Christmas Eve, up from KSh 94.80 million the previous day
Market capitalisation increased by KSh 3.25 billion, reaching KSh 1.913 trillion, as companies with gains outperformed those with losses
NSE's top gainers included UNGA Group Ltd, I&M Holdings PLC, WPP Scangroup Ltd, Kenya Power, and East African Breweries PLC
Elijah Ntongai, a journalist at TUKO.co.ke, has more than three years of financial, business, and technology research and reporting expertise, providing insights into Kenyan and global trends.
The Nairobi Securities Exchange (NSE) experienced a remarkable surge in activity on Christmas Eve, with turnover jumping to KSh 145.76 million from KSh 94.80 million recorded the previous day.
NSE CEO Frank Mwiti speaking at a past event and picture of the NSE market monitor used for display. Photo: @NSE_PLC.
Source: Twitter
The increase of KSh 50.96 million resulted from increased participation from both retail and institutional investors, with local players leading the charge.
Top gainers on NSE
Notably, Market capitalisation, which stands for the total value of the available shares on the market, rose by KSh 3.25 billion to reach KSh 1.913 trillion on the same day, according to data from the NSE.
This means that companies whose stocks gained outweighed those that lost value during the trading session on December 24 compared to December 23.
The top gainers on December 24 included UNGA Group Ltd, which led with a 9.80% increase, selling at KSh 16.25. I&M Holdings PLC followed with an 8.22% gain, trading at KSh 34.90.
WPP Scangroup Ltd achieved a 6.82% rise, closing at KSh 2.35, while Kenya Power and Lighting Company saw a 5.99% increase to KSh 4.25. East African Breweries PLC rounded out the list with a 5.20% gain, reaching a selling price of KSh 182.00.
The trading activity also showed robust growth, with the total number of shares traded increasing by 434,900, while equity turnover surged by KSh 50.96 million on Christmas Eve.
Retail versus institutional traders on NSE
Retail investors contributed KSh 38.12 million to the day?s turnover, 26.15% of which was from retail investors. Institutional investors dominated with 73.85% participation, generating KSh 107.64 million.
Overall, retail investors purchased stocks amounting to KSh 20.39 million, up from KSh 11.42 million on December 23.
Foreign investors sell out on Christmas
Foreign investor participation in the market accounted for 37.48% (KSh 54.63 million) of the day's trades on December 24, an improvement from 7.63% (KSh 7.23 million) recorded on December 23.
In contrast, local investors contributed 62.42% of the turnover, injecting KSh 91.13 million into the bourse on December 24. This translated to a KSh 102.42 million net buying position by local investors from foreign investors.
Overall Christmas market outlook
Overall, the trading session on December 24 marked a significant improvement compared to the previous day, with an increased market turnover and a significant increase in retail investor activity.
Although the NSE All Share Index registered a slight decline, closing at 121.77, down by 0.22 points, the NSE 20 Share Index and the NSE 25 Share Index performed positively, with notable increases of 9.32 and 7.04 points, respectively.
In the derivatives market, turnover increased significantly by KSh 594,200, although total derivatives deals dropped by 10. The market also saw an uptick in open interest and volume of derivatives, which rose by 38 and 18, respectively.
Source: TUKO.co.ke
