This archive report was first published on 2 July 2019.
Published on July 2, 2019, a report by Standard Investment Bank (SIB) revealed a significant decline in turnover at the Nairobi Securities Exchange (NSE) in the second quarter of the year.
The average daily traded turnover in the market fell from Sh780 million in the second quarter of 2018 to Sh539 million this year, with local participation in the market declining.
Market intermediaries, who earn a commission on trades handled, are facing a threat to their revenue due to the fall in turnover.
Stockbrokers are allowed to charge up to 2.1 percent in commission per trade, but trades are realistically charged a lower rate due to discounts and competition for business.
Foreign investor participation in the market increased, accounting for 71 percent of turnover in the three months, compared to 61.7 percent in the second quarter of last year.
They made net inflows of Sh1.3 billion during the quarter, largely due to heavy buying activity in May when their net inflows stood at Sh2.2 billion.
However, last month, the foreign investors made net sales of Sh894 million, while in April they had net buys of Sh35.8 million.
Activity by local retail investors has been hurt by the decline in share prices in the market this year.
The benchmark NSE 20-Share Index was down by 7.5 percent during the quarter, while the All Share Index closed the quarter 5.1 percent lower.
