- Buyers on the Nairobi Securities Trade (NSE) misplaced $263.5 million (Sh34 billion) in paper wealth within the three months to September 2024.
- The amount of shares traded decreased barely by 0.65% to 1.092 billion in comparison with 1.097 billion in Q2 2024.
- Within the bond market, the turnover decreased by 29.37%, with Sh323.61Bn traded in Q3 in comparison with Sh458.2Bn in prior quarter.
Buyers on the Nairobi Securities Trade (NSE) misplaced $263.5 million or Sh34 billion in paper wealth in three months to September because the nation recovered from shocks of the bloody Gen Z protests in June. The third quarter Statistics launched by the Capital Markets Authority exhibits the market capitalisation on the Nairobi bourse dropped by 2.01 per cent through the interval to Sh1.67 trillion from Sh1.71 trillion.
The $263.5 million drop in paper wealth is, nonetheless, decrease than the $410.7 million (Sh53 billion) hit suffered within the three months to June. The amount of shares traded decreased barely by 0.65 per cent to 1.092 billion in comparison with 1.097 billion in Q2.2024.
The NSE All Share Index, a market cap-weighted index consisting of all of the securities on the bourse additionally decreased by 2.20 per cent to 107.08 factors from 109.49 factors in Q2, 2024.
Though the capital markets regulator didn’t give causes for the marginal drop-in actions at NSE, a market perception launched by the Kenya Institute for Public Coverage Analysis and Evaluation (Kippra) exhibits that the loss majorly resulted from a 2.97 drop within the complete worth of shares traded within the interval.
“The interval was marred by political tensions – largely occasioned by the Gen Z-driven demonstrations – elevating uncertainties amongst traders, which worsened market situations,’’ the report learn.
Learn additionally: NSE improve by FTSE Russell displays rising confidence in Kenya’s fairness market
Nairobi Securities Trade efficiency
Within the bond market, the bond turnover decreased by 29.37 per cent, with Sh323.61 billion traded within the third quarter this 12 months in comparison with Sh458.2 billion within the previous three month interval.
Even so, different efficiency metrics on the NSE defied the protests to proceed with the restoration that had picked tempo for the reason that shilling stabilised towards main worldwide currencies after a year-long drop that noticed it shrink to a historic low of 160 models towards the greenback.
As an example, the fairness turnover elevated by 48.9 per cent to Sh28.39 billion from Sh19.07 billion within the three months to June 2024. The wealthy NSE 20 Share Index elevated by 7.19 per cent to 1,775.67 factors from 1,656.50 factors in Q2.
The year-on-year comparability exhibits traders’ paper wealth elevated by Sh183 billion with all indices indicating a bull market. On the identical time, the index that tracks the efficiency of blue chip companies on the bourse elevated 17.69 per cent to 1,775.67 factors within the third quarter from 1,508.75 factors within the corresponding quarter in 2023.
All Share Index elevated by 2.33 per cent to 107.08 factors with the fairness turnover then again growing to Sh17.39 billion from Sh17.22 billion.
Learn additionally: How Do Inventory Markets Function?
Overseas traders on the NSE
Whereas traders are delicate to uncertainties, international traders on the Nairobi bourse maintained their calm amid anti-government protests that noticed the nationwide Parliament razed. Statistics present that international investor inflows through the interval outpaced outflows at Sh0.63 billion, in comparison with an influx of Sh2.98 billion recorded in second quarter.
Within the bond market, the bond turnover elevated by 119.5 per cent to Sh391.04 billion from Sh196.30 billion in Q3.2023. The derivatives market registered a 21.9 per cent enhance in turnover through the quarter underneath evaluate, closing Sh45.3 million in comparison with Sh14.93 million.
Moreover, the variety of contract offers and quantity elevated by 11.14 per cent and 18.63 per cent, respectively. Regardless of the efficiency, the NSE is eyeing a lift in international investor participation after the inclusion of 5 extra Kenyan listed firms in Morgan Stanley Capital Worldwide’s (MSCI) frontier market indices.
Learn additionally: ZSE imposes consecutive buying and selling halts amid shares surge, forex dip
