How the NSE performed in the first-half of 2022

Kenya's Nairobi Securities Exchange has been one of the more affected stock markets on the continent in the first half of the year, largely by capital flight. For more on this CNBC Africa is joined by the Founder of Mwango Capital, Eric Mokaya.

Wed, 13 Jul 2022 11:09:59 GMT

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AI Generated Summary

Capital flight and global economic challenges have impacted the NSE in the first half of 2022, leading to a decline in performance and concerns among investors.
Key counters like Safari Co., Nairobi Business Ventures, and Sameer Africa PLC have exhibited varied performance, with factors like speculation, market trends, and industry dynamics influencing their trajectories.
Investor sentiment remains cautious yet hopeful for a better second half of the year, with upcoming financial reports from major players expected to shape market dynamics.

Kenya's Nairobi Securities Exchange (NSE) has experienced significant turbulence in the first half of 2022, with capital flight impacting the market as investors pulled out. Eric Mokaya, the Founder of Mwango Capital, shed light on the market's performance and shared insights on key counters such as Safari Co., Nairobi Business Ventures, and Sameer Africa PLC. The NSE index showed a rally in the morning, with positive movements, but the overall picture in the first half of the year raised concerns. While the market saw a decline in the first six months, there are hopes for a better second half, with the upcoming election playing a significant role in investor sentiment. Safari Co. Council has traditionally been a strong performer, but recent pullouts have raised questions. Mokaya attributed this to global economic challenges and a shift in investor interest towards new opportunities. He noted that Safari Co.'s fundamentals remain strong, and upcoming developments like the launch of new operations could attract investors back. Nairobi Business Ventures, on the other hand, faced challenges due to speculation influencing its performance. Mokaya emphasized the need to wait and observe how the company's initiatives unfold in the coming years. Sameer Africa PLC emerged as a surprise best-performing counter at the start of the year, driven by investor interest in building materials. The company's focus on cement and construction materials aligned with market demands, leading to a positive trajectory. Looking ahead, Mokaya highlighted the importance of upcoming financial reports from key players like banks and companies like Sameer Africa. The market's performance in the second half of the year remains uncertain, with global factors and the election outcome adding to the complexity. Mokaya advised investors to stay vigilant and capitalize on opportunities as they arise, especially during market downturns. Despite the challenges faced by the NSE in the first half of 2022, there is optimism for a potential turnaround in the second half. The market's resilience, coupled with strategic investments and developments in key sectors, could pave the way for a more stable and prosperous period ahead.