GROWTH

Investors' wealth at NSE up by Sh270 billion in six months to June

During the quarter, the capital markets sector also witnessed several milestones.

In Summary
  • The market also  recorded  36.04 per cent  increase in bond turnover to Sh 271.23 billion.
  • The capital markets industry  generally recorded increased performance on all key indicators.
NSE chief executive Geoffrey Odundo monitors daily trading at the Nairobi Bourse/
NSE: NSE chief executive Geoffrey Odundo monitors daily trading at the Nairobi Bourse/
Image: FILE

Investors at the Nairobi Securities grew their wealth in the first six months of 2021 by 10.9 per cent as the market recovers from effects of Covid-19.

The Capital Market Authority's Q2 statistical bulletin shows market capitalization at the Nairobi bourse grew to Sh2.702 trillion compared to Sh2.5 trillion in Q1.

This means investors' paper wealth grew by Sh270 billion during the period under review. 

According to the report, the capital markets industry  generally recorded increased performance on all key indicators.

These include a 19.69  per cent increase in the Equity turnover to Sh37.99 billion and an increase in shares traded to Sh1.99 billion  up from 997.75 million shares traded in the previous quarter.

There was  a 4.39 per cent  increase on the NSE 20 Share Index to close the quarter at 1,927.53 points, a 9.4 per cent increase on the NSE All Share Index to 173.53 points.

The market also  recorded  36.04 per cent  increase in bond turnover to Sh 271.23 billion.

The derivatives market registered a 192.93 per cent increase in the volume traded, closing the quarter at 3,234 contracts compared to 1,104 contracts traded in Q1 2021.

The derivatives trading turnover increased by 144.35 per cent closing the quarter with 136.07 million from 55.68 million recorded in Quarter 1 2021.

Similarly, the number of deals increased by 392.16 per cent during the Quarter, closing the quarter at 1,506 deals, up from 306 deals registered in the previous quarter.

The Asset Under Management by Collective investment Schemes also recorded a 6.08 per cent increase from Sh104.71 billion managed in quarter ended December 31, 2020, to Sh111.09 billion managed in Q1.2021.

During the quarter, the capital markets sector also witnessed several milestones.

For instance,  Family Bank got approval from the Authority to issue a Subordinated Multicurrency Medium Term Note of Sh8 billion in tranches with the first tranche comprising of Sh3 billion with an approved green shoe of Sh1 billion.

The bond received an oversubscription of 147.3 per cent.

 The Authority also granted approval of the Crown Paints rights issue aimed at raising Sh711,810,000 by issuing and listing 71,181,000 new ordinary shares on the Nairobi Securities Exchange.