These 5 Blue-chip companies ‘literally own’ Nairobi Stock Exchange and accounted for 70% of the total value in 2019 Q2

Investors walk out of the Nairobi Stock Exchange in Kenya's capital Nairobi, in a file photo. REUTERS/Noor Khamis
  • In the second quarter of 2019, Blue-chip stocks and listed State bonds firmed their grip on a subdued market, with five equity counters currently accounting for 70% of the total value.
  • The five listed Blue-chip companies are not new kids on the block and have held their positions for a while now.
  • Market capitalisation—calculated as share prices multiplied by issued stock—which stood at Sh2.3 trillion in the first quarter slid 3.3 per cent to Sh2.2 trillion.

As 2019 draws to a close, Blue-chip companies listed at the Nairobi Stock Exchange are emerging as clear winners and their hold on the market is but growing stronger with each passing day.

In the second quarter of 2019, Blue-chip stocks and listed State bonds firmed their grip on a subdued market, with five equity counters currently accounting for 70% of the total value.

“During the quarter, the top five companies by market capitalisation accounted for 70.80 percent, the highest in the last four quarters, confirming their dominance in the Kenyan securities market,” Capital Markets Authority (CMA) Soundness report shows.

The five listed Blue-chip companies are not new kids on the block and have held their positions for a while now.

The CMA report shows Safaricom, Equity Bank, East Africa Breweries Ltd, Kenya Commercial Bank and Cooperative Bank had the highest concentration of the market over the last year.

In the first quarter, the five companies made up 67.5% market capitalisation while in the last quarter of 2018 they comprised 65.8% of the market.

Between July and September 2018, the five firms made up 68% of the market value.

The dominance wasn’t for nothing and Kenya Commercial Bank, Kenya’s biggest bank by assets, recorded some brisk business during the Q1 and Q2 of 2019.

For the first six months of 2019, KCB Group profit grew by 5% compared to the same period last year to hit Sh12.7 billion ($127 million).

The result put KCB ahead of its closest rival Equity Group which closed the period with Sh11.92 billion ($119.2 million) net profit.

Market capitalisation—calculated as share prices multiplied by issued stock—which stood at Sh2.3 trillion in the first quarter slid 3.3 per cent to Sh2.2 trillion.

Meanwhile, in the first six months of 2019, the value of disclosed corporate deals in East Africa stood at Sh113.6 billion ($1.1 billion) driven mainly by activity in the financial, energy and manufacturing sectors.

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