Kenya’s capital market presented a mixed performance for the quarter ending June 30, 2024, with notable developments at the Nairobi Securities Exchange (NSE).
The market capitalization saw a growth of approximately Sh100 billion, rising to Sh1.71 trillion from Sh1.6 trillion in the previous quarter, according to data from the Capital Markets Authority.
Equity turnover witnessed a significant increase of 48.91%, reaching Sh28.39 billion, up from Sh19.07 billion in the first quarter of 2024.
Despite this, the NSE 20 Share Index and the NSE All Share Index experienced declines of 5.47% and 3.18%, respectively. The volume of shares traded also saw a slight decrease of 0.65%, totaling 1.09 billion shares.
Year-on-year comparisons indicate robust growth across several metrics. The NSE 20 Share Index rose by 5.18%, while the NSE All Share Index increased by 2.33%. The volume of shares traded surged by 42.54%, equity turnover jumped by 97.23%, and market capitalization grew by 2.66%.
In the primary market for Treasury bonds, six bonds were issued during Q2 2024, including re-opened bonds and tap sales, with no new issues introduced.
The government successfully raised Sh183.55 billion, slightly below the target of Sh185 billion. However, the secondary bonds market faced a 29.4% decline in turnover, dropping to Sh323.61 billion from Sh458.20 billion in Q1 2024. Nonetheless, bond turnover saw a substantial year-on-year increase of 119.54%, up from Sh147.41 billion in Q2 2023.
The derivatives market experienced a 44.66% decrease in the number of deals, closing Q2 2024 with 1,005 deals compared to 1,816 in Q1 2024.
Turnover fell by 16.53% to Sh37.18 million, while traded volume spiked by 135.33% to 746 contracts from 317 contracts in the previous quarter.
The Collective Investment Schemes (CISes) asset class continued its positive trajectory, with Total Assets Under Management (AUM) growing by 4.8% to Sh225.36 billion from Sh215.05 billion in the prior quarter. Government of Kenya securities remained the dominant allocation for AUM.
In a notable corporate action, Nation Media Group PLC completed a successful share buyback program through the NSE, repurchasing 19,029,516 ordinary shares—equivalent to 10% of its adjusted issued share capital—from July 3, 2023, to June 12, 2024.
This reduced the company’s issued share capital to 171,265,647 ordinary shares available for trading on the NSE, with all repurchased shares now held as treasury shares.
As Kenya transitions into the 2024/2025 financial year, market stakeholders are poised to focus on creating an environment conducive to increased investment opportunities.
