Joseph Bonyo
12 January 2010
Nairobi — The stocks rally at the Nairobi Stock Exchange slowed down on Tuesday closing 5.05 points south of the previous day on the NSE 20-share index.
The bourse ended the day at 3344.54 compared to Monday when it gained 1.4 per cent of last weeks closing. The more inclusive All share Index was, however, up 0.33 point to reach 75 points.
The total number of shares traded increased to 57.8 million on 1,958 deals dealt on the second day of this weeks trading. Market capitalisation also went up to Sh873.3 billion compared to Monday's Sh869.5 billion.
Among the heavily traded counters was Safaricom limited with 52.1 million shares exchanging at an average of Sh5.15. The share has been on a growth trend slightly surpassing its offer price over the last few days.
Despite the slight drop on the index, analysts are looking forward to a brisk week in trade at the bourse. This has been attributed to the picking investor confidence for the equity markets in the New Year.
According to analysts at CFC Stanbic Financial, the bourse is likely to benefit from an improved economy. This is anchored on the recent estimates by among other institutions the International Monetary Fund that Kenya is out of a two-year stagnation.
The market is also likely to benefit from the expected delivery of a new constitution by the political class as well as the spill over of the FIFA World Cup in South Africa.
While trading is still being controlled by the huge presence of foreign investors, local investors are expected to flock back as the year progresses.
"We are likely to end higher because people are coming back to the market," Mr Fred Mweni managing director Tsavo Securities was recently quoted saying. Local investors are likely to be buoyed by these new trends at the market.