Shareholder’s Wealth at NSE Hit a High of KSh.630bn in Q3

Investors at the Nairobi Securities Exchange (NSE) have a reason to smile after their wealth hit a high of 630 billion shillings in the third quarter of 2021.

Thanks to the recovery efforts from the effects of the Covid-19 pandemic, the market capitalization at the NSE rose to 2.778 trillion shillings compared to 2.148 trillion during the same period in 2020.

Nevertheless, the shareholders’ paper wealth grew by 76.5 billion shillings on a quarter-to-quarter basis. This increase translates to a 2.83 percent growth compared to a market capitalization of 2.702 trillion shillings in Q2.

The NSE All-Share Indices at the Nairobi bourse rose by 5.38 percent and 2.75 percent, respectively in Q3. The two recorded 2.031.27 points and 178.31 points respectively at the end of the quarter.

The bond market turnover, on the other hand, also grew by 11.01 percent during the period under review thanks to the 301.10 billion shillings worth of bonds traded.

The equity turnover at the NSE performed poorly recording 31.36 billion shillings in Q3 compared to 37.99 billion shillings in the previous quarter. This was as a result of reduced trading activity during the third quarter.

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Traded shares dropped 13.93 percent to 946.48 million in the quarter compared to 1,099.65 million in Q2.

The NSE top 10 companies held 89.94 percent of the total market capitalization, led by Safaricom that controlled almost 60 percent.

Equity Bank, KCB, East Africa Breweries, Coop Bank, Absa, Standard Chartered Bank, BAT, NCBA, and I&M Bank accounted for 2.5 trillion shillings of the total market capitalization.

The derivatives market registered a 34.6 percent drop in the volumes traded to close the quarter at 2,115 contracts compared to 3,234 contracts traded in Q2 2021.

Similarly, the turnover closed the quarter at 78.52 million, a 42.29 percent decrease from 136.07 million recorded in Quarter 2.

As of June 30, 2021, the total assets under management by the CIS were 117.77 billion shillings, a 6.08 percent rise from 111.09 billion shillings managed in the quarter ended March 31, 2020.

At 47.29 billion shillings, CIC Unit Trust Scheme led the pack with the largest portion with NCBA Unit Trust Scheme following suit by managing 14.81 billion shillings in the same period.

Nabo Capital recorded the highest increment of 37.52 percent recording 2.4 billion shillings as of June 30, 2021, up from the 1.78 billion shillings registered in the previous quarter.

Amana Unit Trust funds recorded the highest decline of funds managed by 40.35 percent to report 45 million shillings in Q2 from 75.6 billion shillings in Q1.

During the period under review, CMA approved the application by Nairobi Business Ventures Ltd to issue a Shareholder’s Circular about proposed investments in Air Direct portfolios.

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The regulator also gave a nod to an application by African Diaspora Asset Managers Limited relating to the registration of the ADAM Unit Trust Fund comprising of the Adam Equities Fund, Adam Money Market Fund, Adam Balanced Fund, and Adam Fixed Income Fund.

The regulator agreed to the application by East African Breweries Limited for the establishment of a MediumTerm Note Programme of up to 11 billion shillings and listing of all the issued notes on the Nairobi Securities Exchange.