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NSE Equity turnover declines in Q3 to KSh 31.4 Billion



Nairobi Securities Exchange(NSE) Equity Turnover in the third quarter ending September 2021 declined by 17.45% to KSh 31.36 Billion compared to KSh 37.99 Billion registered in Q2, 2021.

According to the Capital Markets Authority(CMA) Quarterly Statistical Bulletin for Q3, 2021, this data confirms decreased trading activity at the bourse during the third quarter of this year

Similarly, the volume of shares traded decreased by 13.93% to 946.48 Million in Q3. 2021 compared to 1,099.65 Million in Q2. 2021.

NSE Market Capitalization and Indices, however, improved in Q3 2021

However, end of Q3 2021 NSE market capitalization recorded a 2.83% increase to KSh.2,778.65 Billion from KSh2,702.22 Billion recorded in Q2. 2021.

Similarly, the NSE 20 Share and the NSE All-Share Indices increased by 5.38% and 2.75% respectively in Q3 2021 recording 2,031.27 points and 178.31 points respectively at the end of the quarter.

A further year on year comparison between Q3.2021 to Quarter 3.2020 indicates that equity turnover decreased by 17.32%, volume of shares traded decreased by 37.41% while market capitalization, NSE 20 Share Index, NSE All-Share Index and bond turnover recorded increases of 29.32%,9.66%,27.46% and 32.14% respectively from Q3.2020

The bond market turnover, however, increased in Q3 2021 by 11.01% with KSh.301.10 Billion worth of bonds being traded compared to KSh.271.23 Billion traded in Q2. 2021

In the secondary bonds market, Q3.2021 bond market turnover increased by 11.04% with KSh301.10 Billion worth of bonds being traded compared to KSh 271.23 Billion traded in Q2.2021.

A year-on-year comparison of Q3.2021 bond turnover with Q3.2020 indicates a 32.14% increase from KSh.227.86 recorded in Q3.2020 to KSh.301.10 Billion recorded in Q3.2021.

“Through its regulatory sandbox, the Authority has also continued to facilitate fintech firms to test their innovations in a controlled and cost-effective environment in readiness for roll out in the mass market.

During the quarter under review, Innova, one of the admitted firms exited the sandbox following successful testing of their cloud-based data analytics platform,” said CMA Chief Executive Wyckliffe Shamiah.

He added that the Authority also admitted Acorn Investment Management Limited on 25th August 2021 to test its product dubbed ‘Vuka’, an investment platform to aggregate retail investors into asset-backed financial products such as real estate through a regulated and transparent structure.

During the quarter under review, several events took place including the CMA releasing results of the Crown Paint’s right issue following the approval of the same by the Authority in May 2021.

The rights issue sought to raise KShs.711,810,000 by issuing and listing 71,181,000 new ordinary shares on the Nairobi Securities Exchange. The rights registered an oversubscription of 13.74% in terms of the bids received and raised KSh.809,594,700.

On September 29, 2021, Nation Media Group(NMG) announced the results of share buyback of up to 10 % of its issued and paid-up share capital following the closure of the offer on 24th September 2021 which ran from 28th June 2021.

The Company acquired 17,101,352 (representing 8.25% of the total issued share capital) ordinary shares, leaving 190,295,163 ordinary shares as the ordinary shares available for trading at the NSE.

“Elsewhere, the total value of Asset Under Management by Collective investment Schemes
continued on a positive trajectory recording a 6.08% increase from Ksh 111.09 Billion recorded in Q1.2021 to KSh117.77 Billion recorded in Q2.2021,” said Shamiah.

The top 5 listed firms in terms of equity turnover in Q3, 2021 were led by Safaricom at KSh 5,009.25 Million followed by Equity( KSh 1,436.48 Million), EABL( KSh 1,229.88 Million), KCB( 1,145.71 Million) and Bamburi( 192.56 Million).

During the quarter under review, CMA gave approved an Application by Nairobi Business Ventures Ltd to issue a Shareholder’s Circular in relation to proposed investments in Air Direct Connect Limited, Aviation Management Solutions Limited, Delta Automobile Limited and Delta Cement Limited.

CMA also gave approval to an application by East African Breweries Limited for the establishment of a MediumTerm Note Programme of up to KSh 11 billion and a listing of all the issued notes on the Nairobi Securities Exchange.

The Authority also approved 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 derivatives market registered a 34.60% decrease in the volume traded closing the quarter at 2,115 contracts in Q3.2021 compared to 3,234 contracts traded in Q2 2021. Similarly, the turnover recorded a 42.29% decrease closing the quarter at 78.52 Million compared to 136.07 Million recorded in Quarter 2 2021.

The number of deals also decreased by 52.26% in Quarter 3 2021 closing the quarter at 719 deals from 1,506 deals registered in the previous quarter.

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