NSE key index dips as bank stocks rule

The benchmark index for the 20 best performing counters at the Nairobi Securities Exchange (NSE) dropped by 6.3 per cent in 2019 compared to the previous year.

A market report from the bourse shows that the NSE 20 share index closed the year at 2654.39 even as the NSE 25 share index rose by 15.46 per cent to settle at 4100.57 points.

The Nairobi All Share Index (NASI), on the other hand, gained 25.98 points to close the year at 166.4.

Mobile service provider Safaricom and leading lenders KCB and Equity Group Holdings were the top firms, delivering the highest value to shareholders in 2019.

The year in review saw a 21.44 per cent growth in market value, with market capitalisation closing at Sh2.5 trillion compared to Sh2.1 trillion recorded in 2018.

Equity turnover, however, fell 12.4 per cent in 2019 to Sh153 billion compared to Sh175 billion the previous year, according to the NSE data.

In the banking sector, shares worth Sh62.6 billion were transacted, which accounted for 25.2 per cent of the year’s traded value.

Equity Group was the most active counter in the sector, moving 749 million shares valued at Sh31.5 billion at a price range of between Sh32.5 and Sh54.

KCB shares worth Sh19.2 billion, on the other hand, were transacted, with the bank’s shares posting a 44.8 per cent gain to close the year at Sh54.

Co-operative Bank for its part moved shares worth Sh2.9 billion, which was a 14.3 per cent rise compared to 2018.

The bonds market at the exchange, meanwhile, rose 15.8 per cent to Sh651 billion, up from Sh562 billion traded in 2018. The insurance sector accounted for 0.91 per cent of 2019’s traded value, with shares worth Sh2.27 billion being traded. KenyaRe topped the sector with 128 million shares worth Sh750 million being traded at between Sh2.57 and Sh3.29

The investment sector accounted for 0.64 per cent of the year’s traded value, with shares worth Sh1.64 billion changing hands.

Centum closed the year 0.85 per cent higher at Sh25.9, moving 49 million shares valued at Sh1.5 billion.

The manufacturing and allied sector, on the other hand, moved shares worth Sh24 billion, accounting for 9.66 per cent of the year’s traded value.

British American Tobacco (BAT) led on this front, moving 21 million shares valued at Sh12.2 billion.

The cigarette maker’s share price recorded a 31 per cent fall compared to 2018, closing 2019 at Sh500.

East African Breweries rose by 13.59 per cent to Sh198.5, with shares worth Sh11.5 billion transacted in 2019.

Safaricom was the key highlight in the telecommunication sector during the year, with Sh2.1 billion shares valued at Sh58.7 billion changing hands, representing 23.6 per cent of 2019’s traded value.

The telco’s share price ranged between Sh20 and Sh32 over the year.