Shares of Nairobi Securities Exchange PLC surged to their highest level since May 2019 in today’s trading session, signalling renewed investor confidence in the bourse operator’s growth prospects and the resilience of Kenya’s capital markets.

The stock continued its upward trajectory on sustained buying interest from both local and foreign institutional investors who are positioning themselves for what they believe could be a strong earnings rebound driven by trading activity and new strategic initiatives.

Market data showed the NSE share price gaining significantly in early trades, pushing it beyond levels last seen more than five years ago.

Traders attributed the rise to bullish sentiment following a series of announcements highlighting ongoing digital transformation, cost optimisation and product diversification aimed at attracting increased participation by retail investors.

Analysts say the company’s performance has been boosted by a recovery in equities trading turnover and the expansion of its derivatives and fixed income segments which are starting to contribute more meaningfully to revenue.

Investor optimism has also been supported by management’s pledge to deepen regional partnerships and launch innovative products targeting diaspora and youth investors as part of a broader strategy to grow market liquidity.

Brokers observed that some investors are taking long term positions in anticipation of improved dividend payouts as profitability strengthens, noting that the stock had been undervalued for years as trading volumes across the bourse remained depressed.

Despite today’s rally, analysts caution that sustaining the upward momentum will depend on the NSE attracting more listings and overcoming macroeconomic headwinds that have constrained investor sentiment in recent years.

They pointed to the need for continued policy support to promote capital markets as a key driver of long term financing for Kenyan corporates.

Nonetheless today’s price surge marks a major psychological milestone for the counter, underscoring growing confidence in the exchange operator’s turnaround strategy.