An investor at the NSE. [Photo/nation.co.ke]
The Nairobi Securities Exchange (NSE) which measures the performance of all listed companies gained 27.2 percent and the NSE share index piece gained 16.5 per cent.
The investors’ wealth on the Nairobi bourse on Wednesday closed at Sh. 2.498btrillion, an increase of Sh.567.2bilion compared with the same period last year.
In an interview with the Business Daily on Friday Neha Datta an investment consultant and risk manager at Zahara formerly Alexander Forbes East Africa said that attributed the stock market gain to the interest rates law cap where investors jumped shipped from deposit interest to stock investment.
“The stock market performance during the year was driven by recovery in the banking sector in anticipation of an amendment of the interest capping law and positive investor sentiment on Safaricom,” Datta said.
The growth of the stock market is a big boost for insurance and pension funds firms which are among the highest investors on the market.The analyst remained upbeat that the asset market will still outdo other sectors in 2018.
“The markets are meant to look ahead and discount the future. I think the equity market will continue to outperform other assets in 2018,” the expert said as quoted by the Business Daily.