Kenya's capital market exhibited mixed performance in the quarter to June 30, 2024, with investors' paper wealth at the Nairobi Securities Exchange (NSE) growing by at least Sh100 billion.
Data by the Capital Markets Authority shows the total market capitalisation for the quarter was Sh1.71 trillion compared to Sh1.6 trillion in the first quarter.
"In Q2 2024, the equity turnover increased by 48.91% percent to Sh28.39 billion from Sh19.07 billion in Q1 2024."
However, the NSE 20 Share Index and NSE All Share Index declined by 5.47 percent and 3.18 percent, respectively.
The volume of shares traded saw a slight decrease of 0.65 percent to 1.09 billion.
Year-on-year, the market displayed robust growth, with the NSE 20 Share Index up by 5.18 percent, NASI by 2.33 percent, shares volume traded by 42.54 percent, equity turnover by 97.23 percent, and market capitalization by 2.66 percent.
In the primary market for Treasury bonds, a total of six bonds were issued in Q2 2024, comprising six re-opened bonds and seven tap sales, with no new issues.
The government successfully raised Sh183.55 billion against a target of Sh185 billion.
The secondary bonds market, however, experienced a 29.4 percent decline in turnover to Sh323.61 billion compared to Sh458.20 billion in Q1 2024.
Nevertheless, on a year-on-year basis, bond turnover surged by 119.54 percent from Sh147.41 billion in Q2 2023.
The derivatives market reported a 44.66 percent decrease in deals, closing Q2 2024 with 1,005 compared to 1,816 deals in Q1 2024.
Turnover dipped by 16.53 percent to Sh37.18 million from Sh44.54 million in Q1 2024, while traded volume spiked by 135.33 percent to 746 contracts from 317 contracts in Q1 2024.
The Collective Investment Schemes (CISes) asset class maintains its upward momentum in Q1 2024, with Total Assets Under Management (AUM) growing by 4.8 percent to Sh225.36 billion from Sh215.05 billion in the previous quarter.
The majority of AUM remained allocated to Government of Kenya securities.
"The new 2024/2025 financial year provides an opportunity for our market stakeholders to work towards a common goal of creating an enabling environment that would spur investments in Kenya.
During the period, Nation Media Group PLC completed a share buyback programme conducted through the Nairobi Securities Exchange from July 3, 2023 to June 12, 2024.
The company repurchased 19,029,516 ordinary shares, equaling 10 perent of its adjusted issued share capital, achieving complete success.
This reduces the company's issued share capital to 171,265,647 ordinary shares available for trading on the NSE, with all repurchased shares now held as treasury shares.