The primary stock exchange in Kenya and in all of East Africa is the Nairobi Securities Exchange (NSE). Its headquarters are in Nairobi, Kenya’s capital, where it was established in 1954. The NSE is dedicated to offering a fast, clear, and tightly controlled market for trading securities.
The NSE is anticipated to rank among Africa’s top exchanges in terms of performance in 2022. With a solid regulatory environment, a thriving capital market, and an expanding investor base, the NSE is well-positioned for long-term growth. The exchange has put in place a number of initiatives, including the NSE Trading Platform, the NSE Investor Protection Fund, and the NSE Market Surveillance System, to accomplish this achievement.
1. OCH – Olympia Capital Holdings Limited
Olympia Capital Holdings Limited (OCH), which has a return on investment of 32% year to date, has been doing well and is one of the best stocks in the Nairobi Security Exchange (NSE) this year. Strong performance throughout the company’s businesses and the expansion of the Kenyan economy as a whole have both contributed to the company’s success. OCH invests in a variety of industries, including real estate, healthcare, finance, travel, and energy. With a portfolio of investments spread out across the nation, the company has a significant presence in the Kenyan market. In order to improve its performance, the company has also been active in making strategic acquisitions.
2. NCBA – NCBA Group Plc
One of the top financial services organizations in East Africa is NCBA Group Plc. On the Nairobi Securities Exchange, it is listed (NSE). Customers in Kenya, Tanzania, and Uganda can obtain banking, insurance, and asset management services from the organization. With a 31% YTD return, NCBA has had significant increase in its stock price this year. As the business continues to broaden its offerings and enter new areas, this is probably going to persist. It is anticipated that in 2022, it would rank among the NSE’s best-performing equities.
3. LIMT – Limuru Tea Company Limited
In 2022, the performance of Limuru Tea Company Limited (LIMT) on the Nairobi Securities Exchange (NSE) will be influenced by a variety of variables, including the state of the Kenyan economy, the company’s own performance, and any modifications to the regulatory landscape.
It is hard to make any firm predictions about how any company will do in the future, thus it is also impossible to forecast how LIMT will perform on the NSE in 2022. However, it is logical to predict that LIMT will keep being one of the top businesses in the Kenyan tea sector based on the company’s present performance and other elements. The business has a significant market share and has persevered through trying times to keep itself profitable. It is conceivable that LIMT will be a top performer on the NSE in 2022 if the firm can continue to operate at its current level of success.
4. PORT – East African Portland Cement Co. Ltd.
One of the oldest companies in Kenya, East African Portland Cement Co. Ltd. (EAPCC) has been listed on the Nairobi Securities Exchange (NSE) since 1923. With a year-to-date stock price increase of 19.8%, EAPCC has been doing well on the NSE thus far in 2021. The stock has increased 52.2% over the past year, versus a 7.2% increase for the NSE All Share Index. The business dominates the local market and is the sole cement maker in East Africa. Supercrete, Powercrete, and Portland Cement are its three primary products.
5. Equity Group Holdings
One of the best-performing equities at the moment on the Nairobi Stock Exchange is Equity Group Holdings. The price of the stock has increased significantly over the last 12 months and has increased by more than 60% since the start of 2020. The business has also experienced significant growth in its profitability, with profits up 19% in the first quarter of 2020. For investors seeking for a dependable stock, Equity Group Holdings is a well-liked option since it is seen as steady and operating well.
As a whole, Equity Group Holdings is doing well in 2022 on the Nairobi Stock Exchange, with rising share prices and impressive financial outcomes. Future improvements in performance may also be brought on by the company’s aspirations to grow in the area.
6. RIL-Reliance Industries Ltd.
One of the most important equities on the National Stock Exchange is Reliance Industries Ltd. (RIL) (NSE). It is anticipated to continue doing well after 2022. The corporation is well-established in the telecommunications, retail, energy, and petrochemical industries. One of the most sought-after stocks on the NSE, the firm has been consistently expanding its sales and earnings year over year and has a robust dividend policy to back it up. It is also anticipated to gain from the government’s emphasis on economic growth and infrastructure. RIL is ideally situated to take advantage of India’s economic prospects and is anticipated to continue to play a significant role in the Indian stock markets.
As of February 2021, Safaricom was the largest listed firm on the Nairobi Securities Exchange (NSE), accounting for around 23% of the total market value. Safaricom is now listed on the NSE. Since it was listed in 2008, Safaricom’s stock has steadily increased, and over the last five years, it has consistently been among the best performers on the NSE. With a share price of KES 43.20 as of February 2021, Safaricom has a market value of KES 579.5 billion. Given that Safaricom is in a good position to benefit from Kenya’s rapidly expanding mobile and digital payment sectors, it is anticipated that the firm will continue to do well in 2022.
With a 9.8% increase in total customers over the previous year, Safaricom has experienced rapid subscriber growth. This pattern is anticipated to continue in 2022 as the business is well-positioned to benefit from Kenya’s explosive development in mobile and digital payments. Additionally, Safaricom anticipates profiting from a rise in demand for high-speed internet services following the introduction of its 5G network in 2021.
8. Nation Media Group
In 2022, Nation Media Group has had good results on the Nairobi Stock Exchange. Over the last year, the company’s stock price has rapidly increased; it is presently trading at KES 44.75 per share. This is higher than the share’s KES 38.50 January 2021 starting price. Since mid-2022, there has been little movement in the share price of the corporation.
Nation Media Group performed well overall in 2022 on the Nairobi Stock Exchange, with its share price rising steadily throughout the year.
9. Kenya Airways
As of 2022, Kenya Airways is doing well on the Nairobi Stock Exchange. Since the beginning of the year, Kenya Airways’ share price has climbed considerably; it is presently trading at KES 5.90 per share. This marks a growth of 74.67% from the year’s beginning. The company’s market capitalization, which is presently KES 10.8 billion, has also increased. A net profit of KES 549 million was reported for the most recent quarter, continuing the company’s upward trend in earnings. In general, Kenya Airways is doing well in 2022 on the Nairobi Stock Exchange.
10. EABL- East African Breweries Limited
The Nairobi Stock Exchange-listed East African Breweries Limited is anticipated to do well in 2022. The share prices of EABL increased in 2021, and the company is predicted to perform well in the upcoming year. The business has seen an increase in the demand for its goods and has been successful in cutting costs, which has resulted in higher profits. One of the most alluring investments on the NSE, according to analysts, the company will continue to increase its market capitalization and profits in 2022.
EABL is still predicted to be a profitable business in the upcoming year despite the present economic slowdown. Higher revenues and earnings are probably in store for the firm in 2022 because to its solid financial sheet, competitive goods, and effective operations. The government’s investment in the area will also benefit the company, which could further improve its performance in the upcoming year.
11. Britam Holdings
One of the biggest businesses listed on the Nairobi Stock Exchange is Britam Holdings (NSE). In 2022, the company’s performance on the NSE has been largely favorable. Since the beginning of the year, the stock has increased by more than 20%, peaking in February at KES.44.50. This has mostly been fueled by the company’s insurance, banking, and asset management divisions performing well. Due to the company’s most recent capital raising effort’s success, investor interest has also surged. As it continues to concentrate on growing its activities in East Africa, Britam Holdings is anticipated to continue to perform well in the upcoming months.
12. Co-operative Bank of Kenya
The share price of The Co-operative Bank of Kenya increased from a low of KES 12.50 in January 2021 to a high of KES 19.75 in March 2021, indicating the bank’s strong performance on the Nairobi Stock Exchange in 2021. Given that the bank is well-positioned to gain from the expansion of the Kenyan economy, it is anticipated that the share price would increase further in 2022. However, potential risks like political unrest and macroeconomic uncertainty should be kept in mind by investors.
The FTSE NSE 25 Index, a crucial yardstick for the performance of firms on the Nairobi Stock Exchange, has also added the Co-operative Bank of Kenya to its list of featured companies. Investors might anticipate profiting from the bank’s outstanding performance on the exchange in 2022 as a result of this encouraging development.
The Nairobi Securities Exchange has a promising future, and with the appropriate measures in place, there is a good chance that by 2022, it will rank among the top exchanges worldwide. Maintaining market openness and integrity, ensuring liquidity, fostering innovation, and facilitating a stable and well-regulated environment are all necessary for achieving this. Maintaining solid connections with investors, banks, and other market participants is also crucial. These conditions will allow the NSE to surpass other exchanges in performance by 2022.
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Vincent Nyagaka is a Professional Trader, Investor, and Author. He has built an 8-figure solid business around Forex, Stocks. He was recognized as one of the top 100 entrepreneurs under the age of 30 by the United Nations. His work is featured in top publications like Entrepreneur, Forbes, Inc, FoxBusiness, and more. Check out Vincent’s Professional Trading Course here.