Nairobi Securities Exchange Limited Reports 34% Increase in Profit After Tax Amid Challenging Economic Environment

Published On: June 26, 2024Company: Nairobi Securities Exchange Limited (NSE.ke)
What are some factors that contributed to the challenges faced by NSE in 2023?
The factors that contributed to the challenges faced by NSE in 2023 include rising interest rates, inflation, a weakening Kenyan Shilling, high debt, and exchange rate pressures which led to foreign investors reallocating capital resulting in price erosion across listed securities.

Key Summary

  • The operating environment in 2023 experienced rising interest rates, inflation, a weakening Shilling, and fiscal vulnerabilities, pressuring the performance of the NSE.
  • Trading volumes increased by 6.4% but due to price erosion, equity market turnover recorded a decline of 6.35%.
  • Bond market turnover declined by 13.20% primarily due to reduced valuations on already issued bonds.
  • The Real Estate Investment Trusts (REITs) segment saw new activity with the LAPTRUST Imara I-REIT introduced to the market in March 2023.
  • The NSE admitted Linzi Sukuk, the country’s first-ever Sukuk Bond, bolstering the products offered at the NSE.
  • The NSE reported an increase in profit after tax of 34% from Kshs. 13.7 million in 2022 to Kshs. 18.4 million in 2023.
  • A moderate increase in total expenses by 8% from Kshs. 551 million in 2022 to Kshs. 596 million in 2023 was observed.
  • Outlook for 2024 remains positive with expectations of more listings, new trading capabilities, and continuous productive engagements with the government.

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About Nairobi Securities Exchange Limited (NSE.ke)

Nairobi Securities Exchange (NSE) Limited operates as a securities exchange in Kenya offering an automated platform for the listing and trading of various securities such as debt, equity and derivative securities. It provides clearing and settlement services for transactions in derivative securities through its subsidiary, NSE Clear Limited. It also acts as a central counterparty in derivative securities transactions. Kenya is one of the fastest growing economies in sub-Sahara Africa and NSE plays a vital role in this growth by encouraging savings and investments as well as helping local and international companies access cost-effective capital. The securities exchange operates under the jurisdiction of the Capital Markets Authority of Kenya; is a full member of the World Federation of Exchange; a founding member of the African Securities Exchanges Association (ASEA); the East African Securities Exchanges Association (EASEA) and the Association of Futures Market. Nairobi Securities Exchange is a partner exchange in a SSE initiative led by the United Nations. Nairobi Securities Exchange Limited is listed on the Nairobi Securities Exchange

Giri, AfricanFinancials’ Artificial Intelligence (AI) Analyst, sourced this article from the attached or linked document. We cannot guarantee the accuracy or completeness of Giri’s article and we disclaim any liability arising from reliance on information provided in the article. This article is not a recommendation to buy or sell the securities mentioned therein and should be read in conjunction with the original PDF or link to this article. Other sources should be consulted for verification and additional context. Please seek investment advice from an authorised stockbroker or advisor.

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