TRADE: Stakeholder wealth at the Nairobi Securities Exchange (NSE) grew by Sh260 billion in 2021 to Sh2.59 trillion compared to 2020, representing 11 per cent gain, data from the bourse indicates.

 Trading activities were up nearly 10 per cent in 2021 with the bond market activities rising 18 per cent compared to 2020.

Government securities sold in 2021 had fixed interest rates of between 9.49 per cent and 13.44 per cent, giving investors guaranteed income over their holding period.

Treasury bonds became a shelter for many investors starting last year when the outbreak of the pandemic sent share prices diving and broke the rally in the value of real estate that had been going on for more than 15 years.

“The market capitalisation which measures the value of all listed companies was up 10.9 per cent to settle at Sh2.59 trillion against Sh2.33 trillion posted in 2020,” said NSE in the end of year report. 

This means that investors who did not sell their shares when markets were sinking last year recovered an average of 11 per cent depending on which shares they were holding.

Main winners

Investors in Safaricom and the  banking sector were the main winners in 2021 as the two sector defied the difficult market environment to post profits.

Investors at NSE who bought Safaricom early in the year saw the biggest gain in their paper wealth this year with Equity and KCB took the cue in building shareholder wealth.

Safaricom shares rose from Sh38 a share to Sh48, representing a 51 per cent growth. The counter close trading this year at Sh37 a share last Friday.

The banking sector accounted for 31 per cent of the trading value. Equity Bank share price appreciated by 44 per cent to Sh52.75 compared to Sh36.55 posted last year.

KCB shareholders were up 19 per cent to Sh45 a share while NCBA also gained 5.6 per cent last year.