Penny Stocks Shine In NSE Rally

Hello there ?????

It's Brian from The Kenyan Wall Street?

In today's newsletter, the Kenyan stock market has ramped up investors' wealth by KSh 137 billion. Also, Stanbic Bank shareholders have a reason to smile as the lender records high profits and golden dividends.?

These and more business stories today ; ?

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Penny Stocks Shine in NSE Rally

Penny stocks led Kenya’s market rally, with TransCentury surging 232.5%, Home Afrika gaining 142.9%, and East African Cables rising 18.5%.?

The investment sector recorded the highest returns, with a 51.3% median gain, while agriculture and manufacturing stocks lagged due to weak financials and supply chain disruptions. Overall, the Nairobi Securities Exchange (NSE) added KSh 137 billion in investor wealth over two months, pushing the market cap up 7.1% to KSh 2.1 trillion. Here are the details…

The NSE All Share Index (NASI) climbed 7% to 132.13 points, while the NSE 20 Share Index jumped 14.4% to 2300.17. Foreign investors remained net sellers, offloading KSh 2.2 billion worth of shares year-to-date despite the bullish trend. The rally was fueled by speculative trading ahead of the earnings season, as investors sought short-term dividend opportunities.?

A recent interest rate cut from 13% to 11.25% and a stable shilling have further boosted investor confidence. NSE CEO Frank Mwiti is targeting 9 million retail investors, both locally and abroad, to deepen market participation.

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Stanbic’s Record Payout: Profits Soar

Stanbic Holdings reported a 12.8% rise in net profit to KSh 13.7 billion for 2024, fueled by lower credit impairments and cost-cutting measures.?

The NSE-listed lender declared a record final dividend of KSh 18.90, bringing total payouts for the year to KSh 20.74, a 35% jump from 2023. Revenue fell 3.8% as both net interest and non-interest income declined, though operating costs edged 1.7% lower. Loan loss provisions were halved to KSh 3.1 billion, while gross non-performing loans fell 14.4%, keeping Stanbic’s NPL ratio well below the industry average. The South Sudan unit struggled, with profits plunging 63% to KSh 176 million, as conflict in Sudan weighed on the region’s economy. Full details here…

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