The Nairobi Securities Exchange (NSE) recorded a 20.88% increase in Market Capitalization to KSh 2,437.04 Billion registered in Q1. 2021 from KSh 2,016.06 Billion in Q1. 2020, according to Capital Markets Authority (CMA) Q1 2021 statistical bulletin.
End of Q1 2021, Market Capitalization recorded a 4.29% increase to KSh 2,437.04 Billion, up from KSh 2,336.70 Billion recorded in Q4. 2020.
NSE Q1 performance
In the equities market, turnover for Q1.2021 stood at KSh 31.73 Billion, compared to KSh 27.51 Billion registered in Q4.2020, a 15.34 % increase.
Conversely, year-on-year equity turnover showed a 27.39% decrease from KSh 43.70 Billion in Q1.2020 to KShs.31.73 Billion in Q1, 2021.
Foreign investors at the NSE recorded a net outflow at the bourse of KSh 976 Million in Q1 2021, an improvement compared to KSh 2.67 Billion net outflows at the end of Q4.2020.
Equity trading remains foreign-dominated, with an average of 60.38% foreign investor participation in Q1.2021.
The bond market turnover at the NSE increased in Q1 2021 by 17.80% to KSh 199.38 Billion compared to KSh 169.26 Billion traded in Q4. 2020.
With a bond turnover of KSh 157.98 Billion recorded in Q1 2020, this shows a 26.21% increase in bond turnover using year on year comparison.
In alternative investment segments, there has also been some activity.
In February 2021, Acorn Holdings launched two Student Accommodation REITs (an I-REIT and a D-REIT), positioning Kenya as a pioneer in establishing and trading such instruments in Africa.
Collective Investment Schemes
Assets under management (AUMs) by collective investment schemes have surpassed the KSh.100 Billion mark.
As of December 2020, the value of AUMs was KSh 104.71 Billion, with a majority of these funds being invested in government securities (44.0%) and fixed deposit accounts (34.5%).
“The Capital Markets (Whistle blower) Draft Regulations were published and are currently out for public feedback. The regulations aim to promote ethical behaviours within the capital markers by incentivizing individuals to pro-actively report misconduct within the capital markets,” said FCPA Wyckliffe Shamiah, CMA chief executive.
In the quarter, coffee brokers were also notified to apply for licences to provide coffee brokerage services at the coffee exchange from July 1, 2021.
This follows an initial notice issued mid last year to coffee sector players outlining a smooth and orderly transition to adopting the Capital Markets (Coffee Exchange) Regulations, 2020.
The CMA also onboarded a consultant to aid in the review of the Capital Market Master Plan (CMMP, 2014-2023), which provides the long-term strategic direction for the Kenyan capital markets aligned to aspirations of the Kenya Vision 2030.
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