Investors at the Nairobi Securities Exchange (NSE), as reported by the Kenyan newspaper, The Star, suffered a Sh34 billion loss in paper wealth between June and September as the country dealt with the aftermath of the anti-bill protest.
This is according to the Q3 Statistical Bulletin, recently published by Capital Markets Authority.
The report shows that the Nairobi bourse’s market capitalization fell by 2.01% over the time, to Sh1.67 trillion from Sh1.71 trillion.
The quantity of shares purchased fell by 0.65% to 1.092 billion from 1.097 billion in Q2.2024.
The NSE All Share Index, a market cap-weighted index encompassing all stocks listed on the exchange, fell by 2.20 percent to 107.08 points from 109.49 points in Q2.2024.
While the capital market failed to rationalize the slight decline in activities at NSE, the Kenya Institute for Public Policy Research and Analysis (Kippra), noted that the loss was mostly due to a 2.97 reduction in the total value of shares traded during the time.
“The period was marred by political tensions—mostly occasioned by the Gen Z-driven demonstrations—raising uncertainties among investors, which worsened market conditions,’’ the report read.
Furthermore, bond turnover declined by 29.37%, with Sh 323.61 billion exchanged in Q3.2024 compared to Sh458.2 billion in Q2.2024.
Notwithstanding the unrest, other NSE indicators continued to improve as the shilling continued to perform well.
For example, equities turnover rose by 48.9 percent to Sh28.39 billion from Sh19.07 billion in Q2.2024.
The rich NSE 20 Share Index rose 7.19 percent to 1,775.67 points from 656.50 points in Q2.2024.
Investors’ paper wealth rose up to Sh183 billion year over year, according to the report, with all indexes pointing to a bull market.
Kenya’s Treasury Secretary, John Mbadi, said that the National Treasury expects a budget deficit of 767 billion shillings ($5.95 billion) for the fiscal year ending June 2025.
