A statistical bulletin released by the Capital Markets Authority (CMA) has revealed that investors took home 350 billion shillings in the last quarter of 2019 at the NSE.
Data from the CMA indicates that the total market capitalization at the securities exchange grew by 15.98 percent from Q3 2019 to 2.54 trillion shillings from 2.19 trillion shillings.
Likewise, trading volumes at the NSE increased by 21.27 percent to 1.29 billion shillings compared to 1.1 billion shillings over the corresponding period.
Equity turnover for Q4 2019 stood at 45.01 billion shillings, compared to 30.66 billion shillings registered in Q3 2019; a 46.80 percent increase.
The NSE All Share Index and the NSE 20 Share index recorded increases of 14.40 percent and 9.15 percent.
During the period under review, the Government sought to raise 135 billion shillings through three Treasury Bonds and accepted 115.56 billion shillings, indicating an 85.60 percent acceptance rate.
The secondary bond market, on the other hand, witnessed a decline in activity as turnover decreased by 42.59 percent with 106.46 billion shillings worth of bonds traded compared to 185.44 billion shillings traded in Q3. 2019.
This performance was partly attributable to shift by investors to the secondary equities market and redemption of three corporate bonds during the quarter; namely CIC Insurance Group Plc 5 billion shillings, Housing Finance Plc 3 billion shillings and Consolidated Bank Ltd 1.5 billion shillings.
While general market performance was relatively subdued in the first three quarters of the year relative to the year 2018, performance in Q4.2019, especially for the equities, was on a positive trajectory, surpassing performance in the corresponding quarter in 2018.
“Outlook, therefore, remains positive, with the Government keen on actualizing its key projects under the “Big 4” Agenda, some of which will require capital market funding,” says the CMA.
According to the CMA, the removal of interest rate caps is expected to boost credit to the productive sectors of the economy.