Nairobi Securities Exchange (NSE) witnessed a momentous surge of Sh38.6 billion in investor wealth on Thursday, marking a significant milestone with the most substantial single-day increase in eight months.

This remarkable upswing illuminated the market landscape, propelled chiefly by notable gains in Safaricom and major banking institutions.

The NSE’s market capitalization, a pivotal gauge of investor prosperity, closed at an impressive Sh1.563 trillion, a stark contrast from Wednesday's figure of Sh1.524 trillion.

Safaricom, a titan within the exchange, spearheaded this surge by contributing nearly half of the day’s gains, amounting to Sh16.02 billion. The telecommunications giant’s shares exhibited a commendable ascent of 2.7 per cent, concluding at Sh15 per share.

Undeniably, Safaricom's dominance was palpable, commanding a staggering 90 per cent of the day’s trading activity, which totalled Sh704.31 million.

Read More

  1. Safaricom's Ethiopia venture receives boost as telecom regulator slashes rates
  2. Safaricom injects Sh20 million to power up the Connected Africa Summit 2024
  3. Govt urged to reinstate stamp duty exemption for real estate investment trusts

Trading volumes surged as Safaricom witnessed movement in 42.42 million shares, representing an impressive 92 per cent of the total 45.97 million units traded across the NSE during the session.

The upward trajectory of Safaricom's shares aligned with anticipation surrounding the impending book closure for the company’s interim dividend of Sh0.55 per share.

Set for payout on March 31, this interim dividend, announced on February 22, added further allure to Safaricom's stock.

In a market note on Thursday, investment bank Genghis Capital remarked, “Safaricom was the most traded counter on the day ... with net foreign inflows amounting to Sh2.6 million.”

Large banking entities also played a pivotal role in driving market optimism, as investors eagerly sought shares in anticipation of enhanced dividend payouts for the 2023 financial year.

Equity Group emerged as a frontrunner in this segment, witnessing a market cap surge of Sh5.28 billion following a 3.4 per cent increase in share price, settling at Sh41.60.

Other notable banking institutions registering valuation gains exceeding Sh1 billion included Absa Kenya at Sh3.8 billion, KCB Group at Sh3.53 billion, Co-op Bank of Kenya at Sh2.93 billion, NCBA Group at Sh2.55 billion, and Stanbic Holdings at Sh1.88 billion.

The substantial surge in investor wealth signals renewed confidence in the NSE, buoyed by robust performances from key players like Safaricom and leading banking institutions.

As the market traverses dynamic landscapes, such bullish trends underscore the resilience and potential of Kenya's financial ecosystem.