The Nairobi Securities Exchange has recorded a massive decline in the half-year results from a net profit of KSh134 million in June 2018 to KSh24 million in June 2019.
The company’s revenues went down by 18 per cent to KSh289 million mainly due to low equity turnover.
Trading activity at the stock market slowed down in the first six months of 2019 leading to depressed revenues.
The NSE is largely dependent on foreign investors; the global economic decline has led to a dip in foreign investor participation at the Nairobi exchange.
Additionally, local investors reduced their investments in stocks and moved funds into safer assets like government bonds, contributing to the low equity turnover.
NSE’s interest income decreased by 20 per cent to KSh47 million from KSh59 million earned the previous year.
The exchange incurred a one-time staff restructuring expense of KSh52 million during the period.
NSE is counting on the system upgrade to increase activity at the bourse and grow the firm’s revenues.
NSE is counting on the system upgrade to increase activity at the bourse and grow the firm’s revenues.
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A slowdown in international markets drags Kenya’s equities market
