This archive report was first published on 21 January 2022.
January 21, 2022 - The Nairobi Securities Exchange (NSE) experienced a significant decline in market capitalization in the fourth quarter of 2021, with a 6.6% drop to Sh2.592 trillion.
This decline resulted in a Sh185.73 billion loss in shareholders' wealth, according to the latest Capital Market Authority (CMA) statistical bulletin.
Despite this decline, investor wealth grew by 10.97% on a year-on-year basis, increasing from Sh2.336 trillion in December 2020 to Sh2.592 trillion in December 2021.
Wyckliffe Shamiah, CEO of the Capital Markets Authority, expressed confidence in the industry's ability to weather current and future uncertainties, stating, 'The Authority remains confident that collaboration among the capital markets stakeholders will strengthen the industry's ability to weather any current or future uncertainties.'
Equity market turnover remained steady in the last six months of 2021, increasing to Sh36.31 billion in the quarter ended December 2021 compared to Sh31.36 billion in the quarter ended September 2021.
However, year-on-year performance showed a 7.58% decrease in equity turnover, with Sh137.41 billion recorded in 2021 compared to Sh148.68 billion in 2020.
The Kenyan bond market experienced increased activity in 2021, with a turnover of Sh956.97 billion compared to Sh691.83 billion in 2020, representing a 38.33% increase.
The significant change in the bond market was attributed to attractive infrastructure bonds issued during the year, which spurred investor participation due to their good returns and tax-free nature.
