The Nairobi Securities Exchange (NSE) has reported a 2.8 % drop in market capitalization from Kes.2,496 Billion in February 2022 to Kes.2,425.5 Billion in March 2022.
Consequently, Equity turnover at the bourse decreased by 3.3% in March 2022 from Kes.9.97 Billion to Kes.9.64 Billion; while bonds turnover increased by 54.3% from Kes.54.9 Billion to Kes.84.7 Billion.
The NSE-20 Index also declined by 2.1% in March from February 2022.
Safaricom was the leading stock during the month recording 40.6% of total turnover. However, telecom also experienced some downturns last week resulting in Investors at the NSE losing kes 73.2 billion in a week which saw the value of the bourse sink to a one-year low.
The Absa New Gold Exchange Traded Fund (ETF) also recorded an all-time high turnover of Kshs. 91.7 Million during the month on a volume of 44,000 units, contributing 11.57% of overall turnover. The security rose by 10.37% to Kes 2075, up from Kes 1880 registered in the previous session.
NSE Global Economy Outlook
In the monthly report, the NSE said the global economic outlook for 2022 was projected lower at 4.4% in January 2022 from 4.9% by the International Monetary Fund (IMF) as a result of new Covid-19 Omicron variants that brought arise new mobility restrictions.
However, this forecast is expected to be impacted further by the current Russia-Ukraine war that has led to serious trade disruptions and an increase in refugees. The current sanctions imposed on Russia will have a major impact on global macros mainly exchange rates, supply chains, inflation and the capital markets.
China’s Covid-19 resurgence also spells gloomy economic prospects. Despite 88.77% of the population being fully vaccinated, there have been confirmed 928,756 Million new cases in the past month and 6,837 deaths.
