Half of firms Listed in Kenya’s Stock Exchange are yet to Recover from Covid 19

More than 50% of stock prices at the Nairobi Securities Exchange (NSE) are yet to stabilize to their pre-covid 19 levels even after the full recovery of the bourse and economic revival from the pandemic-induced slump.

Out of the 58 actively traded counters, only 31 were trading below their closing price when Kenya announced the first coronavirus case that pulled down the main market index to a 20-year low as investors dump stocks.

Investors have therefore become picky during the recovery and are putting money in companies that are considered stable such as Safaricom.

Nairobi Business Ventures have also recorded a higher gain as compared to its peers after it made positive corporate moves in the stock market such as bonus issuances.

Safaricom’s share price has gained 62% since coronavirus first hit Kenya, closing at Ksh41.80 a unit on Friday, September 24, 2021. The gain has safeguarded its position at the NSE’s dominant stock accounting for Ksh2.77 trillion of investor wealth which is equivalent to 60% of the market’s total capitalization.

National Bank of Kenya’s stock remains suspended after the takeover by KCB. However, cross-listed Rwandan lender Bank of Kigali has gained 24%.

Analysts review that investors put their focus on the blue chips such as BAT and Safaricom. This is because their business indicators are least affected by the pandemic. The analysts also expect that the market will eventually regain some equilibrium. This is where the price movements will be fairly distributed among the different stocks backed by new products and a n increase in profitability for most companies.