NSE daily turnover rises 402.7% to hit Ksh2.3bn

The Nairobi Securities Exchange (NSE) witnessed a remarkable surge in daily equity turnover, reaching 2.3 billion Kenyan shillings from the previous day's 447 million Kenyan shillings. This sharp increase was mainly attributed to the sale of Stanbic shares, which led to a rise in the volume of shares traded to 39.7 million from the previous 13 million. Robert Ochieng, the CEO of Abojani Investments, shed light on the major transaction involving Stanbic Bank Kenya during a recent interview on CNBC Africa. According to Ochieng, Stanbic Bank's parent company aimed to increase its ownership to 75% by acquiring more shares locally. The removal of a government cap that restricted foreign companies from holding more than 75% of local firms allowed Stanbic to pursue this transaction through the Capital Markets Authority. This move significantly impacted the market, indicating a positive shift in ownership dynamics. Despite this notable transaction, the overall market sentiment remains bearish, reflecting ongoing challenges in the local market. Ochieng underscored that the Stanbic deal was a one-time event amidst prevailing pressures in the market. Addressing the resilience of the banking sector, Ochieng expressed optimism about investing in Kenya's banking industry, citing the country's youthful and expanding economy. With increasing access to digital services, many banks are venturing into the digital banking space, presenting lucrative opportunities for investors. While uncertainties about the future persist, Ochieng emphasized the long-term investment prospects in Kenya's banking sector. Reflecting on recent market fluctuations, Ochieng noted that certain events, like the Stanbic transaction, can cause fluctuations in the market but may not signify a continuous trend. As investors navigate through uncertainties, cautious optimism prevails, especially with impending elections that could impact market dynamics. Long-term investors with risk tolerance and the capacity to withstand market changes are primed to capitalize on investment opportunities in Kenya. Furthermore, Ochieng discussed the recent leadership changes at KCB Bank, pointing out that despite initial concerns, the strategic succession planning at the institution appears robust. He also touched upon SafariCom's performance, emphasizing the company's significant revenue growth and expansion efforts. While facing challenges such as heavy finance costs, SafariCom remains a strong player in the market with promising growth prospects. Assessing the volatility in NSC indices, Ochieng highlighted the challenge posed by underperforming companies, leading to a shift in focus towards blue-chip companies for stability. The NSC-20 and NSC-25 share indices recorded declines, reflecting the broader volatility in the market amidst economic uncertainties and challenges faced by various companies. In conclusion, while the Kenyan stock market experienced a notable surge in daily turnover driven by a key transaction, ongoing market pressures and volatility underscore the need for strategic investment approaches and a cautious outlook amid evolving market conditions.