- The Banking Sector had shares worth US$50,126 (Sh7.9 million) transacted which accounted for 63.34 percent of the day’s traded value at Nairobi Securities Exchange.
- In 2021, 8.7 million shares were traded worth $1.5 million (Sh242 million), while 2022 saw the number rise to 17.6 million shares valued at $4 million (Sh630 million).
- In the nine-month period leading up to September 2023, the NSE ranked as the least performing African bourse in dollar terms, underscoring the impact of foreign withdrawals and global shocks.
Trading at the Nairobi Securities Exchange began 2024 on a four-year low on Tuesday, with 897,000 shares traded, signaling low confidence among investors.
The value of the shares dropped to $79,314 (Sh12.5 million), compared to 2023 when the bourse opened trading with 1.73 million shares, equivalent to $21,467 (Sh33.8 million). It is the first time in four years that the NSE began with less than a million shares trading.
In 2021, 8.7 million shares were traded, worth $1.5 million (Sh242 million), while 2022 saw the number rise to 17.6 million shares valued at $4 million (Sh630 million).
According to market data, this year the exchange closed on Tuesday, January 2, 2024 with only $79,314 million turnover. The exchanges top indices recorded mixed performances with The NSE 20 share Index losing 7.68 points to stand at 1508.83.
The Nairobi All Share Index (NASI) which tracks the performance of all stocks, edged down 0.13 points to close at 91.97. However, the NSE 25 Share Index gained 7.07 points to settle at 2387.30. The NSE 10 share index added 3.72 points to stand at 911.24.
“The Bourse opened the year 2024, with a total of 904,000 shares valued at US$79,315 (Sh12.5 million), against 2.6 million shares valued a US$265,863 (Sh41.9 million) posted on the last trading day of 2023,” the NSE said in its daily brief.
Banking sector had shares worth US$48,223 (Sh7.9 million) transacted which accounted for 63.34 percent of the day’s traded value.
Nairobi Securities Exchange Top Counters
Standard Chartered Bank Kenya was the day’s main feature with 20,000 valued at $79, 315 (Sh3.2 million). Safaricom PLC actively moved 176,000 shares valued at $15, 228 (Sh2.4M) representing 19.30 per cent of the day’s traded value.
Flame Tree, Williamson Tea, Eveready, Britam and Uchumi emerged as the day’s to gainers while Nairobi Business Ventures, EAAGADS limited, NSE, Umeme and Stanbic bank were days’ top losers.
After suffering greatly in 2023 due to the departure of foreign investors, listed shares at the Nairobi Securities Exchange are expected to rebound in 2024. Fixed income securities are also considered asset classes to monitor in the upcoming year.
Between January and September last year, a total of 6,256 foreign investors, constituting 42 per cent of the total foreign investor population, shifted their investments to fixed income assets.
Net foreign portfolio outflows reached US$123.7 million (Sh19.5 billion) over the ten months until the end of October, with June and August being the only months experiencing positive foreign flows.
In the nine-month period leading up to September, the NSE ranked as the least performing African bourse in dollar terms, underscoring the impact of foreign withdrawals and global shocks.
As the New Year approaches, the Nairobi Securities Exchange is anticipated to experience relief from anticipated interest rate cuts in advanced economies, potentially reversing the trend of foreign investor departures.
The Capital Markets Authority predicts a rebound for the NSE, supported by attractive entry points for investors characterized by low stock valuations.
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Other sectors contribution to Nairobi Securities Exchange performance
Energy & Petroleum
The Energy & Petroleum sector had shares valued at US$4486 (Sh707,000) traded representing 5.62 per cent of the day’s traded value. Power producer KenGen had 271,000 shares valued at US$3439 (Sh542,000) transacted at between US$0.01 (Sh1.99) and Sh2.07.
Manufacturing & Allied
The Manufacturing & Allied sector had shares valued at US$3052 (Sh481,000) traded representing 3.83 per cent of the day’s traded value. E.A. Breweries traded 3,000 shares worth US$2214 (Sh349,000) and concluded the first day of the year at US$0.74 (Sh116.25).
Telecommunication
Safaricom actively moved 176,000 shares valued at US$15,228 (Sh2.4 million) changing hands at roughly US$0.09; this represented 19.30 per cent of the day’s traded value.
Fixed income securities market segment
The Bond market had bonds worth US$1.4 million (Sh222 million) transacted.
Derivatives
The Derivatives Market had the Equity Single Stock Futures contract expiring on 21st March 2024 trade three contracts valued at US$657 (Sh103,500) at a price of US$0.22 Sh34.50 This is against a closing price of Sh34.20 posted by Equity in the spot market.
