Equity turnover for the three months from June to September dropped to KSh. 30.66 Billion compared to second-quarter turnover which stood at Sh 32.90 Billion; indicating a 6.8% decrease.
According to The Capital Markets Soundness Report, Volume XII-Quarter III 2019, the volume traded at the NSE decreased over the period by 24.05% to 1.06 billion shares compared to 1.397 billion shares in the second quarter of 2019.
Other composite indicators such as the NSE All-Share and NSE 20-Shares index similarly recorded decreases of 2.77% and 7.65% closing the quarter at 145.46 points and 2431.97 points respectively.
During the quarter ended September 2019, the top price gainers were HF Group (75.56 percent), E.A. Cables Ltd (21.31 percent), WPP Scan Group (11.76 percent), KCB Group (9.80 percent) and Total Kenya (5.85 percent).
Price losers were Uchumi (45.10%), Kenya Airways (35.77%), Kenya Power (24.94%), Kenya Re (23.14%) and Trans-Century (21.98%).
During the period under consideration the NSE, with approval from the Capital Markets Authority launched the NEXT Derivatives Market on July 11, 2019 making it the second African Exchange to operate a derivatives market.
The operationalization of the derivatives market is in line with the CMA’s Capital Markets Master Plan which identified establishment of the derivatives markets as a key milestone.
Following the launch, the NSE now offers Index Futures and Single Stock Futures on selected indices and stocks.
According to the CMA soundness report, the market traded 248 Safaricom futures contracts representing a turnover of KSh 6.9 million; banking contracts came in second with 58 KCB Group futures contracts traded at a total turnover of KSh 2.3 million, and 26 Equity Bank futures contracts traded at KSh 1.0 million.
The NSE 25-Share index contract traded 12 contracts at a total turnover of KSh 2.6 million.
The Derivatives Market is expected to provide new opportunities to investors by enabling them to better diversify their portfolios, manage risk, and deploy capital more efficiently.