Foreign investor outflows at the NSE surged more than six times to Sh10.8 billion in the quarter ended June 2022, as the foreigners sought safer investment destinations amid global shocks.
The foreigners had pulled out Sh1.6 billion worth of investments in the first quarter ended March.
The latest outflows are the second-largest after the Sh21.43 billion that was recorded in the first half of 2020, which had been attributed to Covid-19 and the poor performance of some companies listed on the bourse.
“Despite the positive outlook for 2022, the current main uncertainty revolves around the Russia-Ukraine conflict and its effect on global supply chain disruptions,” CMA CEO Wycliffe Shamiah.
Despite the high outflows, foreign investor participation at the Nairobi bourse increased by 6.66 per cent.
According to the CMA Q2 2022 Statistical bulletin, average foreign investors’ Participation was 61.54 per cent compared to 54.88 per cent recorded in Q1 2022. In investor numbers, foreign corporate investors decreased to 115 from 1219 in Q1, while individual foreign investors increased to 13,745 from 13,723.
Investor apathy continued to manifest overall in the markets, with NSE market capitalization decreasing to 1.93trillion in the quarter, a 20.05 per cent dip from Sh2.4 trillion recorded in Q1.2022.
Similarly, the NSE 20 Share and the NSE All Share Indices decreased by 12.66 per cent and 20.08 per cent, respectively, in Q2. 2022 recording 1.612.89 points and 124.47 points respectively in June 2022.
Equity turnover for Q2.2022 stood at Sh26.24billion, compared to Sh27.86billion registered in Q1 2022, a 5.83 per cent decrease.
In addition to this, bond market turnover increased in Q2 2022 by 2.47 per cent, with Sh195.67 Billion worth of bonds being traded compared to KShs.190.95 Billion traded in Q1. 2022.
In the Treasury bond market, the government sought to raise a total of Sh240billion during the quarter and received bids worth Sh 222.71 billion. The government accepted offers worth Sh202.86billion, indicating an aggregated 84.52 per cent acceptance rate.
The total Assets under Management by Unit Trusts in Kenya as at March 2022 stood at Sh140.67billion, a 4.45 per cent increase from Sh134.67billion managed as at the end of the 2021 calendar year.
“The continuous growth of unit trust in Kenya is testament to the increased investor awareness on the ease of entry and withdrawal of funds by investors as well as the appeal of earning returns on savings that are competitive enough to beat inflationary erosion,” Wycliffe Shamiah.
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