The Capital Markets Authority(CMA) has upgraded its surveillance systems to keep up with the new Automated Trading System(ATS) on the Nairobi Securities Exchange trading floor and the CDSC system.
The system enables CMA to obtain real-time information from both the NSE and CDSC systems through an integration interface.
CMA disclosed that the software vendor has completed the installation of the upgraded system and users are testing the system.
“The information is received on real-time basis, stored in MSS Capizar and analyzed by surveillance analysts. This integration has been necessitated by recent upgrades to the ATS and CDSC systems,” said CMA in the Q4 Soundness Report.
A relatively stable political climate and the removal of the rate cap law calmed Kenya’s capital market in the last quarter of 2019.
The CMA report credits the launch of a derivatives market for the improved turnover ratios at the NSE. Some of the stock futures traded at the NSE are; Barclays Bank, Safaricom, KCB Group, Equity Group, EABL, and BAT.
Foreign investor participation during the quarter averaged at 63 percent, a 2 percent decrease from 65 percent recorded in Q3. 2019 and the lowest level in 2019. In the first quarter of 2019, foreign investor participation averaged 77 percent.
Local investors, a sum of East African institutional and individual investors accounted for 81 percent of shares held in the equity market with 19.18 per cent being held by foreign investors.
The total Asset Base of Fund Managers, Stockbrokers, Investment Banks, Investment advisors and online forex brokers as at 30th Nov 2019 was KSh 7.1 billion, KSh2.1 billion, KSh. 13.3 billion, KSh 1.6 billion and KSh 782 million respectively.
Listen to Mr. Wycliff Shamiah, Acting CMA CEO, expounding on the Q4 Soundness Report