Bond trading at Nairobi bourse falls to US$6 million a week

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Bond turnover at the Nairobi Securities Exchange (NSE) fell to the lowest point this week as the segment recorded its worst ever performance. stocks
Turnover stood at a miserable 6 million U.S. dollars showed data from the NSE and Central Bank of Kenya (CBK) Saturday, a level that the vibrant market has never witnessed in recent times.
“The turnover decreased significantly to 6 million dollars from 41.8 million dollars the previous week,” analysts from the CBK noted.
They credited the fall to investors holding onto their money as they wait to be paid proceeds from earlier bond sales they participated in.
“The decline in turnover is attributed to anticipated payments of two bonds issued, face value 206 million dollars, value date June 29. The number of deals fell to 30 from 66 traded the previous week,” said CBK.
The FTSE Government Bond Index recorded a marginal gain of 0.28 percent reflecting a slight decrease in the secondary market yields.
Trading at the market has been subdued for the better part of this year as investors seek opportunities elsewhere following a drop in yields.
In the past six months, weekly turnover has averaged 37 million dollars, down from over 150 million dollars about six months ago and 340 million dollars in June 2013.
Meanwhile, trading at the NSE equities segment surged slightly on increased share supply, which rose by about 50 percent from the previous week.
The market recorded improved performance with the NSE 20 Share Index and equity turnover going up while the NSE All Share Index (NASI) and market capitalisation edged down.
The NSE 20 Share Index gained 0.05 percent, rising to 4,810.36 from 4,796.26 the previous week. Equity turnover during the week stood at 58 million dollars, down from 40 million dollars the previous week.
On the other hand, the NASI closed the week at 162.51, down from 162.82.
Market capitalisation, which measures shareholders wealth declined by 0.08 percent due to drop in average share prices.
The key index closed the week at 23 billion dollars from 23.2 billion dollars the previous week. Market capitalisation has fallen sharply from about 26 billion dollars making investors lose big on their investments.
The FTSE NSE Kenya 15 Index and FTSE NSE Kenya 25 Index which measure stocks performance of 15 largest companies by market capitalisation and 25 most liquid stocks at the NSE respectively, closed the week 0.43 and 0.55 percent lower at 215.65 and 214.18.
Stocks of companies in the telecommunication and technology, banking and energy and petroleum sectors were the most active, representing 36 percent, 29 percent and 15 percent of the total shares traded, respectively.
Automobile and Accessories sector was the least active during the week. Enditem

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