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.
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%.