The Nairobi Securities Exchange (NSE) recorded a total equity turnover of KSh 27.51 Billion in Q4, 2020 compared to KSh 37.94 Billion in Q3, 2020. This, as investors, both local and foreign, stayed away from the bourse during the quarter.
During this period, Market Capitalization grew 8.80% to KSh 2.3 Trillion in Q4.2020 from KSh 2.1 Trillion recorded in Q3. 2020. Volumes traded, however, decreased by 35.88% to 969.57 Million in Q4. 2020 compared to 1.5 Trillion in Q3. 2020.
According to the latest quarterly statistical bulletin from the Capital Markets Authority (CMA), NSE 20 Share Index and the NSE All-Share Index recorded increases of 0.87% and 8.74%.
This is compared to Q3 2020, closing the quarter at 1,868.39 and 152.11.
The bond market activity also declined with turnover falling in Q4 2020 by 25.72% to KSh.169.26 Billion worth of bonds traded than KSh 227.86 Billion sold in Q3. 2020.
Further, a comparative analysis of Q4.2020 and Q4.2019 shows that Equity turnover for Q4.2020 stood at KSh 27.51 Billion, compared to KSh 45.01 Billion registered in Q4.2019; a 38.88% decrease. This confirmed a decline in investor participation at the bourse.
Similarly, end month market capitalization recorded an 8.00% decrease to KSh 2.3 Trillion registered in Q4. 2020 from KSh 2.5 Trillion in Q4. 2019. Volumes of shares traded also decreased by 24.85% to 969.57 Million in Q4. 2020 compared to 1.3 trillion in Q4. 2019.
In the review period, the NSE All-Share Index and the NSE 20 Share Index similarly recorded decreases of 8.59% and 29.61% respectively in Q4.2020 compared to Q4.2019, closing the quarter at 152.11 points and 1,868.39 points, respectively.
Bond market turnover for Q4.2020 stood at KSh 169.26 Billion, compared to KSh106.46 Billion registered in Q4.2019; registering a 58.99% increase.
During Q4.2020, CMA granted a stock brokerage license to Kestrel Capital (East Africa) Limited. It also issued a Fund Management license issued to CFS Asset Management Limited, a Non-dealing Online Foreign Exchange Brokerage License to Exinity Capital East Africa Limited and a REIT Management License to Acorn Investment Management Limited.
CMA also approved the splitting of existing shares of Nairobi Business Ventures by half and issuance and listing of additional 415,000,000 ordinary shares and grant of exemption from the requirement to make a takeover offer by Delta International Holdings FZE for the acquisition of effective control of 84% of voting shares of Nairobi Business Ventures(NBV).
Nation Media Group also got approval to do a Bonus Issue and Listing of 18,854,229 Ordinary Shares to existing shareholders at a rate of 1 ordinary bonus share for every ten shares.
CMA also approved a move by Jubilee Holdings Limited regarding the proposed strategic partnership with Allianz Se regarding general insurance business.
Centum Real Estate Limited got a go-ahead for restricted public offer to raise KSh 4 billion with a Green Shoe Option of raising an additional KSh 2 billion.
The Authority also approved take over of Jamii Bora Bank by Co-operative Bank of Kenya, I&M Holdings Limited acquisition of 90% of Orient Bank Limited Uganda and for Acorn Holdings Limited KSh313 Million medium-term note programme worth KSh 5 Billion.