Bond trading at Nairobi bourse hits two-year low


Bond trading at Nairobi bourse has shrunk significantly as investors shift to the equities market, where share prices of various companies have been on the rise.


Turnover has declined to an average of 37 million U.S. dollars a week, down from over 150 million dollars over six months ago and 340 million dollars in June 2013, analyses from Nairobi Securities Exchange (NSE) and the Central Bank of Kenya (CBK) received Saturday showed.
This week, bonds worth a paltry 34 million dollars were traded, the lowest in over two years. This was a drop from 38 million dollars the previous week as investors gave the market a wide berth.
“Bond turnover decreased by 14 percent to 34 million dollars from 38 million in the previous week. But the number of deals rose to 138 compared to 75 deals traded the previous week,” noted analysts from CBK.
At the end of April, turnover stood at 64 million dollars as the free fall at the market continued. There has been low supply in trades as the number of deals fall every week.
Meanwhile, as fortunes at the bonds market hit nadir, the equities market is on a rally as some of the key indices grow, thanks to rise in share prices particularly of telecommunication firm Safaricom that posted over 340 million dollars end-year profit.
The company’s share hit a high of 0.19 dollars this week as investors in search of higher yields scrambled for it.
Equity turnover this week increased by 84 percent on account of increased share supply, showed the analysis from NSE.
The most sought after shares were those of telecommunication and technology, insurance and banking sectors, representing over 32 percent, 25 percent and 25 percent of the total shares traded respectively.
Automobile and accessories sector was the least active with less than 100,000 shares traded in the week.
The NSE 20 share index during the week stood at 5,070.75, up from 5061.11 the previous week. The NSE All Share Index closed the week at 171.47, a slight drop from 171.52 the previous week.
Market capitalisation stood at 26 billion dollars, a marginal drop of 0.50 percent from last week.
The FTSE NSE Kenya 15 Index, which measure stocks performance of 15 largest companies by market capitalisation closed the week at 224.82, down from 228.4 points.
On the other hand, the FTSE NSE Kenya 25 Index, which measures 25 most liquid stocks at the NSE stood at 224.60. Enditem

Source: Xinhua

Send your news stories to and via WhatsApp on +233 244244807 Follow News Ghana on Google News


Please enter your comment!
Please enter your name here