In the third quarter of 2024, foreign investor participation at the Nairobi Securities Exchange (NSE) took a notable downturn, averaging 42.07%, down from 57.29% in Q2. This 15.23 percentage point drop reflects a shift in foreign sentiment toward the Kenyan equities market, as reported by the Capital Markets Authority (CMA) in their latest quarterly statistical bulletin.
Net foreign portfolio outflows also shifted dramatically, with a Ksh 0.63 billion outflow, in contrast to the previous quarter’s Ksh 2.98 billion inflow. Despite this, local market performance showed strength. The NSE-20 index, which tracks blue-chip stocks, climbed 7.19% to close at 1,775.67 points, a marked improvement from the 1,656.50-point close in Q2. Additionally, equity turnover surged by 48.91%, reaching Ksh 28.39 billion. Even the derivatives market witnessed a promising 21.85% growth in turnover, totaling Ksh 45.30 million for Q3.
Treasury bond activity was equally dynamic, with the Central Bank of Kenya successfully raising Ksh 150.25 billion of the Ksh 145 billion target, reflecting a robust demand at a 103.62% acceptance rate. Collective investment schemes saw a 13% asset increase, closing at Ksh 254.1 billion, showcasing investor appetite for diversified options.
CMA CEO Wyckliffe Shamiah expressed optimism for continued resilience in Kenyan capital markets as demand for derivatives contracts and unit trusts gains traction.
