NAIROBI, Kenya- The Nairobi Securities Exchange (NSE) wrapped up 2024 with a bang, marking one of its best performances in recent years.
With all major indices soaring and market capitalization hitting impressive highs, investors have plenty to celebrate.
The NSE 20 Share Index, a benchmark for market performance, closed at an impressive 2,010.65 points on the last trading day of 2024. This represents a gain of 16.91 points, breaking past the 2,000-point barrier for the first time in several years.
This milestone reflects strong investor confidence, buoyed by positive market fundamentals and robust performances from blue-chip companies.
Market capitalization—often seen as a barometer of investor wealth—climbed 35pc in 2024 to reach 1.939 trillion shillings (approximately $14.98 billion). This translates to a staggering $3.83 billion increase in investors’ collective wealth over the year.
This growth was driven by tangible gains in stock prices across sectors, particularly in banking and telecommunications. Major players like Safaricom and KCB Group were instrumental in propelling the market to these heights.
Blue-chip companies—well-established firms with a history of reliable performance—played a pivotal role in the NSE’s stellar year. Banking and telecommunications stocks emerged as the stars, demonstrating resilience in a challenging economic landscape.
Safaricom, for instance, saw significant price upticks, reaffirming its dominance in the telecommunications sector.
Similarly, banks like Equity and KCB Group capitalized on improved lending environments and increased investor confidence. These companies serve as bellwethers for the broader Kenyan economy, making their success a key indicator of market health.
As the NSE rides the wave of 2024’s success, investors are cautiously optimistic about what 2025 holds.
