•Equity turnover for the quarter that ended December 2022 stood at Sh.17.46 Billion with the volume of shares being 634.17 Million in the same period.
•The derivatives market registered a 36.42 per cent decrease in the number of deals in the quarter under review closing the quarter at 309 deals.
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The increase in participation of investors in the last quarter of 2022 did less to salvage the Nairobi Securities Exchange from global impacts leading to a drop in the volume of shares traded.
The latest soundness report by the Capital Markets Authority shows shares traded decreased by 22.98 per cent in the last quarter of the year.
During the period, the volume of shares traded decreased to 634.17 million compared to 823.34 million in Q3 of 2022.
This was despite increased investor participation in the NSE compared to Q3.
“Average foreign investors' participation in Q4, 2022 was 54.84 per cent compared to 45.55 per cent recorded in the previous quarter, implying a 9.29 per cent increase in foreign investor participation during the quarter,” said CMA CEO Wyckliffe Shamiah.
In the period under review, the NSE 20 Share and the NSE All Share Indices decreased by 2.42 percent and 0.73 percent, recording 1,676.10 points and 127.47 points respectively at the end of the quarter.
The equities market also witnessed a downturn with market capitalization recording a 0.74 Percent decrease to Sh1.99 trillion down from Sh2.trillion recorded in Q3.2022.
Equity turnover for the quarter ended December 2022 stood at Sh.17.46 Billion with the volume of shares being 634.17 Million in the same period.
“Year on year, the market capitalization recorded a 23.4 Percent decrease from Sh2.6 trillion in December 2021 to Sh.1.99 trillion in December 2022,” the report notes.
The reduction in activities extended to the bond market where the government sought to raise a total of Sh272.8 Billion from the primary market and received bids worth Sh.238.95 Billion.
Overall, the bond turnover for the 2022 calendar year was Sh.741.50 Billion compared to Sh.956.11 Billion in 2021; a 22.48 per cent decrease.
Overall, the bond turnover for the 2022 calendar declined by 22.48 per cent to Sh741.50 billion compared to Sh956.1 billion in 2021.
The derivatives market registered a 36.42 per cent decrease in the number of deals in the quarter under review closing the quarter at 309 deals, down from 486 deals registered in Q3.2022.
Similarly, the volume traded decreased by 29.02 per cent closing the quarter at 790 contracts compared to 1,113 contracts recorded in the previous quarter.
On a positive note, the Collective Investment Schemes asset class continues to show consistent growth.