NSE Kenya Half Year Net Profit Plunges By 54%

Nairobi Securities Exchange has reported its numbers for the first half of 2016 with After tax profit falling by a massive 54% to Ksh 82 Million compared to Ksh 178.6 Million reported in a similar period in 2015.

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The exchange cites the challenges witnessed in the global markets with reduced equity trading volumes from foreigners and other market participants.

The Total income for the exchange reduced by 17% from Ksh 401 Million to Ksh 333 Million on the back of decreased equity turnover which dropped by 37% to Ksh 147 Billion.

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Commissions from equity trading declined by 31% from Ksh 255.7 Million to Ksh to Ksh 176.7 Million while commissions from bond trading increased by 39% from Ksh 13.2 Million to Ksh 18.4 Million. On the other hand, income from information & training services increased by 104% to Ksh4.9 Million.

Profit before tax was down by 51% to Ksh 106.6 Million as the value of the exchange’s assets increased by 2% to Ksh 1.94 Billion.

The drop in earnings has also been experienced by NSE Kenya trading members who have argued that its been a challenging environment also citing reduced trades. Brokers like Kestrel & Renaissance Capital who control over 50% of foreign trades last week reported a drop in profits by over 90%.

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