The Nairobi Securities Exchange (NSE) has recorded a profit of KSh54.7 million in H1 this year, citing revenue growth from non-trading income streams like interest and consultancy.
- The profit in this year’s first six months slumped compared to H1 2023 when the company recorded profits of KSh69.38 million due to increased marketing costs and reduced equity transactions.
- Expenses stood at KSh339.4 million in the financial period under review compared to 2023 when the figures were at KSh287.1 million, NSE attributing this to inflationary pressures and the impact of the shilling on dollar-denominated expenses.
- The NSE has also stated that after cabinet approval, the state will sell its shares in 6 companies listed at the bourse in this second half of the year.
“The divestiture of the state’s shareholding in the six listed companies is a testament of the government’s preference of the NSE as the most efficient platform for privatizations,” the NSE stated.
The NSE has said that investor confidence has rebounded indicated by a 19% improvement in the NSE-All Share Index (NASI) during the first six months this year. Equity turnover fell by 19.86% as investors focused their attention to the high-interested bond market.
“Equity transactions levy however reduced by 19.9% from KSh141.6 million in H1 2023 to KSh113.5 million in H1 2024 due to high interest rates on bonds which have shifted secondary trading activity in equities to bonds and the impact of KSh22 billion block transaction in H1 2023,” the NSE said.
This also led to a rise in bond levy, from KSh31 million last year to KSh86 million in H1 this year. The bond market also witnessed a magnanimous turnover in H1, recording KSh781.8 billion in that period compared to 2023 when it stood at KSh309.9 billion.
The NSE plans to achieve a 50-50 balance in revenues derived from trading and non-trading activities. The company’s consultancy unit introduced in 2023 raked in KSh14.4 million in the first half this year. Interest income rose from KSh55 million in 2023 to KSh72 million this year.
The company’s assets fell slightly from KSh2.15 billion in H1 2023 to KSh2.11 billion in H1 2024. The NSE’s tax obligations also rose from KSh22.75 billion last year to KSh25.3 million in the financial period under review.
The bourse intends to list one exchange traded fund after approval from the Capital Markets Authority (CMA). NSE intends to reposition its capital mobilization for listed companies and generate alternative financial instruments for investors.
In July this year, NSE listed a KSh3 billion SUKUK Islamic bond on the unquoted securities platform. The bond, which is Shariah-compliant, is the first of its kind in East Africa.
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