NSE chief executive Geoffrey Odundo monitors daily trading at the Nairobi Bourse/ Shareholders’ wealth at the Nairobi Securities Exchange hit the highest level ever on a year-on-year basis in the first nine months of 2021, driven by recovery from the effects of Covid-19.
The Capital Market Authority’s Q3 statistical bulletin shows market capitalisation at the Nairobi bourse grew to Sh2.778 trillion compared to Sh2.148 trillion same period in 2020.
This translates into paper wealth growth of Sh630 billion during the period under review.
However, investors’ paper wealth grew by Sh76.5 billion on a quarter to quarter basis, a 2.83 per cent increase compared to a market capitalisation of Sh2.702 trillion in Q2.
According to the report, the performance at the Nairobi bourse generally recorded increased performance following easing of Covid-19 restrictions by the government.
The NSE All-Share Indices increased by 5.38per cent and 2.75per cent respectively in Q3 recording 2.031.27 points and 178.31 points respectively at the end of the quarter.
The bond market turnover also increased in Q3 by 11.01 per cent with Sh301.10 billion worth of bonds being traded compared billion traded in Q2.
However, the equity turnover at the Nairobi bourse during the period under review stood at Sh31.36 billion, compared to Sh37.99 billion registered in the previous quarter.
The 17.45 per cent decrease confirms decreased in trading activity at the bourse during the quarter. Similarly, the volume of shares traded decreased by 13.93per cent to 946.48 million in Q3 compared to 1,099.65 million in Q2.
Top 10 companies at the bourse controlled 89.94 per cent of the total market capitalisation, with Safaricom accounting for almost 60 per cent.
The which also include Equity Bank, KCB, East Africa Breweries, Coop Bank, Absa,Standard Chartered Bank, BAT, NCBA and I&M accounted for Sh2.5 trillion of the total market capitalisation.The derivatives market registered a 34.6per cent decrease in the volume traded closing the quarter at 2,115 contracts in Q3 compared to 3,234 contracts traded in Q2 2021.Similarly, the turnover recorded a 42.29 per cent decrease closing the quarter at 78.52 million compared to 136.07 million recorded in Quarter 2.The number of deals also decreased by 52.26 per cent in Quarter 3 closing the quarter at 719 deals from 1,506 deals registered in the previous quarter.Similarly, the number of deals increased by 392.16 per cent during the Quarter, closing the quarter at 1,506 deals, up from 306 deals registered in the previous quarter.As at June 30, 2021, the total assets […]