The bond turnover at the Nairobi Securities Exchange reached an all-time high of KSh691.8 Billion in 2020 as investors shifted funds from high-risk assets such as equities to relatively low-risk bonds. In the past year, many local investors fled from the highly volatile stock market and increased their investments in government bonds which offer stable returns.
The treasury bonds turnover increased by 6% to KSh690.58 billion in 2020, from KSh651.35 billion in the corresponding period in 2019. However, corporate bond turnover fell to KSh1.18 billion in 2020, from KSh3.70 billion a year ago.
In the period under review, NSE’s equity turnover decreased to a three-year low of KSh 148.68 billion as local and international investors fled the equities market. Equity turnover stood at Sh153.82 billion in 2019.
The capital markets authority (CMA) is determined to increase the investor base at the Nairobi Securities Exchange including local, foreign, retail, and institutional investors according to the CEO Wycliffe Shamiah.
Speaking during the release of the Capital Markets Soundness Report, CMA Chief Executive Officer lauded NSE’s resilience even in the face of the pandemic. “Our market was quite robust despite the covid19 pandemic,” said the CEO.
The director of Regulatory Policy and Strategy Luke Ombara revealed that there is a lot of interest to list on the Nairobi Securities Exchange by Kenyan SMEs. However, the existing listing guidelines limit businesses from joining the exchange. The director said that they are reviewing the listing rules and working with the SMEs to ensure that they meet the listing requirements.