NSE Market Capitalization Hits KSh 1.8 Trillion Mark in 1st Quarter of 2024: CMA Report
The Nairobi Securities Exchange (NSE) saw a remarkable increase in its market capitalization, reaching KSh 1,766.95 billion by the end of Q1 2024. This surge marked a 22.79 percent rise from KSh 1,439.02 billion in Q4 2023. The Capital Markets Authority (CMA) attributes this growth to intensified trading activities, evident in the NSE’s equity turnover for Q1 2024, which totaled KSh 19.07 billion. This figure represents a significant 61.56 percent increase compared to KSh 11.80 billion recorded in Q4 2023.
Moreover, the volume of shares traded at the NSE also showed a notable uptick, rising by 35.13% to 1,097.33 million in Q1 2024 from 812.07 million in the previous quarter. The NSE 20 Share Index experienced a robust growth of 16.74 percent, reaching 1,752.43 points in Q1 2024 compared to 1,501.16 points in Q4 2023. Similarly, the NSE All Share Index surged by 22.78 percent to 113.09 points by the end of the quarter.
During the first quarter of 2024, the equities market maintained a subdued pace with no significant activities like Initial Public Offers (IPOs), additional offers, listings by introduction, rights issues, or bonus issues. The firms under suspension included Deacons East Africa Plc, Athi River Mining Cement Plc, Mumias Sugar Company, and Kenya Airways. The sole ongoing activity was Nation Media Group’s second share buyback program, announced in May 2023. NMG intends to repurchase up to 10% of its shares or 19 million shares at a price ranging between the par value and KSh 20 per share. This program is scheduled to conclude by July 2nd, 2024.
In contrast, the bond market witnessed a substantial surge in turnover, which skyrocketed by 232.56% to KSh 458.20 billion traded in Q1 2024 compared to KSh 137.78 billion traded in Q4 2023.
