NAIROBI (Xinhua) --
Kenya’s stocks surged in January to lift all the
key indices of the Nairobi Securities Exchange (NSE) up by
between 1 and 6 percent, pointing to expected positive growth
for the market in 2018.
“In January , the
equities market was on an upward trend with the All Share Index
(NASI), NSE 25 and NSE 20 gaining 5.5 percent, 5.4 percent and
0.7 percent, respectively,” Cytonn, a Nairobi-based investment
firm, said on Monday in a note.
The bourse’s surge
during the month was driven by gains in large capitalization
stocks such as Barclays Bank, Safaricom, Diamond Trust Bank and
Equity Group, which gained by between 6.8 percent and 10.5
that growth at the market this year will be driven by a number
of factors, which include corporate earnings, investor
sentiment, interest rates, new listings and regulation.
“We expect corporate
earnings growth of 12 percent in 2018, higher than the expected
growth of 8 percent for 2017, boosted by a more stable and
favourable business operating environment,” said Cytonn.
according to the investment firm, will this year register
increased foreign inflows from the negative position in 2017.
This would mainly be
supported by a stable business operating environment and long
term investors who enter the market looking to take advantage of
the current low valuations in some sections of the bourse.