Safaricom inflows lift trading at Nairobi bourse

Nairobi Securities Exchange (NSE) turnover rose 173 percent to 8.4 million U.S. dollars Wednesday on a volume of 37 million shares as foreign investors are seeking to cash in on forthcoming Safaricom's dividend payout dominated trading with buys.

Tuesday, the stock market had recorded equity turnover of 3.1 million dollars from 15 million shares.

Safaricom, Kenya's leading telecom operator, moved 22 million shares at unchanged price of 0.21 dollars.

Kenya Commercial Bank was the second top mover, trading 4.1 million shares after going up 0.8 percent to trade at about 0.33 dollars.

Overall, the banking category had 7.3 million shares traded Wednesday, with the sector expected to be hit by the signing into law a Bill to cap interest rates by President Uhuru Kenyatta.

Analysts had warned that the move would lead to drop in share prices of banking stocks, which form the bulk of those in the 20 Share Index, and consequently investor flight.

In the energy sector, a total of 3.9 million shares were moved, with KenGen being the most heavily traded counter as 3.1 million shares changed hands.

Increased trading saw the NSE 20 Share Index end 19.81 points higher to settle at 3,462.68.

Similarly, the All Share Index (NASI) was up 0.17 points to stand at 146.48 while the NSE 25 Share Index eased 3.00 points lower to stand at 3913.93.

The bond market had securities worth 18 million dollars transacted, up from 16 million Tuesday. Endit