Nairobi Securities Exchange PLC · NSEKE:NSE

Nairobi Securities Exchange — Nairobi Stock Exchange — EASEA Consultative Meeting 2005

26 slides from Nairobi Securities Exchange's conference presentation, Aug 10, 2005

  1. Slide 1: Nairobi Stock Exchange Market Report at the EASEA Consultative Meeting

    Nairobi Stock Exchange Market Report at the EASEA Consultative meeting in Nairobi 10th August 2005 By: Mr. Chris Mwebesa Chief Executive NAIROBI STOCK EXCHANGE

  2. Slide 2: Table of Contents

    TABLE OF CONTENTS Stock Market Key Performance Indicators  Market Capitalization and NSE 20-Share Index  Interest Rates on 91-Day Treasury Bill  Equity Monthly Turnover 2003 vs 2004  Bond Monthly Turnover 2003 vs 2004  Month on Month Inflation comparison and NSE 20 Share Index Dec 2003 – Sept 2

  3. Slide 3: Stock Market Key Performance Indicators

    Stock Market Key Performance Indicators NAIROBI STOCK EXCHANGE

  4. Slide 4: Market Performance – Bull Market

    Market Performance – Bull Market 4,500 500 450 4,000 400 3,500 350 NSE 20-Share Index 3,000 300 (Ksh. Billion) Market Cap. 2,500 250 200 2,000 150 1,500 100 1,000 50 29 Jul -05 8 Jul-05 Nov-04 10 Sep-04 Jun-03 Jun-04 May- 05 Sept-03 Dec-02 Dec-03 Feb-05 Mar-03 Mar-04 Month NSE 20 -Share Index Market

  5. Slide 5: Average Monthly Interest Rates Feb 2004 – July 2005

    Average Monthly Interest Rates Feb 2004 – July 2005 10 9 8 7 Interest ( %) 6 5 4 3 2 1 0 Oct-04 Dec-04 Feb-04 Aug-04 Feb-05 Apr-04 Jun-04 Apr-05 Jun-05 Month 91day TBill 182 day Tbill

  6. Slide 6: Equity Monthly Turnover Comparisons for 2003, 2004 and 2005

    Equity Monthly Turnover Comparisons for 2003, 2004 and 2005 5500 4500 Turnover Vlaue (Ksh. Millions) 3500 2500 1500 500 'Jan 'Feb 'Mar 'Apr 'May 'Jun 'Jul 'Aug 'Sept 'Oct "Nov 'Dec End Month Figures Equities -Year 2003 Equities-Year 2004 Equities-Year 2005

  7. Slide 7: Bond Monthly Turnover from 2003 to 2005

    Bond Monthly Turnover from 2003 to 2005 7000 6000 5000 Turnover( Kshs milion) 4000 3000 2000 1000 0 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Month 2003 2004 2005

  8. Slide 8: 2005 vs 2004 Market Performance

    2005 vs 2004 Market Performance Mkt. indicator 2004 Cumulative % of 2004 Stats 2005 Achieved No. of shares Traded (Mn) 625.29 424.47 67.88 Equity Turnover (Kshs Mn) 22,321.0 17,647.52 79.06 5 No. of Equity Deals 127,730 84,127 65.86 Bonds Turnover (Kshs Mn) 34,553.4 6,754.00 19.55 1 No. of Bond Deal

  9. Slide 9: Structure of Government Debt

    Structure of Government Debt Domestic Debt (Ksh. June 2004 April 2005 Billions) Gov. Securities 289.50 293.87 Treasury Bills (Excludes 62.90 62.75 REPO Treasury Bills) (25.00% of Tot. T- (24.43% of Tot. bills and T-Bonds) T-bills and T- Bonds) Treasury Bonds 188.63 194.15 (74.99% of Tot. T- (75.57%

  10. Slide 10: Six Months Market Performance Overview – The Bullish Market in 2005

    Six months market performance overview- The bullish market in 2005 Best stock in terms of share price appreciation between 1st Jan. to 8th July 2005 Company Share Price Kshs High Low Change % Change Kenya Airways 82.00 17.15 64.85 378.13 Mumias Sugar 37.50 8.00 29.50 368.75 E.A. Cables 140.00 50.00

  11. Slide 11: Trend: NSE Share Index & Market Capitalization

    Trend: NSE 20 Share Index & Market capitalization Since Sept 30 2002, •the NSE 20 Share Index has moved from 1043.73 to 3,987.04 on July 22, 2005, a rise of 2, 943.31 points, 282.00% change. •the market capitalization has moved from Ksh. 85.79 billion to Ksh. 433.10 billion on July 15, 2005, posting

  12. Slide 12: Reasons for the Bullish Equity Market

    Reasons for the Bullish Equity Market.  Improved Economic prospects: Agriculture, Tourism, Transport and Telecommunication sectors.  Real GDP is forecast to increase from a growth rate of 4.3% in 2004 to 4.8% in 2005 and 5.1% in 2006;  Economic activity strongest in the key export sectors of hort

  13. Slide 13: Reasons for the Bullish Equity Market

    Reasons for the Bullish Equity Market.  Improved corporate earnings  Introduction of Central Depository System ( CDS) – boosted liquidity

  14. Slide 14: Outlook for Economy

    Outlook for Economy NAIROBI STOCK EXCHANGE

  15. Slide 15: Threats

    Threats:-  Inflation: could trigger off contractionary monetary policy;  If the Government has to resort to the domestic markets for extra funds than anticipated to finance its deficit, this coupled with strong demand for credit from the private sector could cause interest rates to rise higher and

  16. Slide 16: Threats (Contd)

    Threats (Contd):-  The garment export sector (EPZ) after 4 years of consecutive growth, is now under threat following the end of the Multi Fibre Arrangement in Jan 2005, which has exposed Kenyan producers to low cost Asian producers, particularly China. The industry is expected to continue to suffe

  17. Slide 17: Opportunities

    Opportunities:-  Kenyan goods continue to exhibit strong export performance there is potential for further growth into the COMESA region and Southern Sudan;  Coffee industry reforms could notch up growth by upto 1% per annum in 2006 – 7;  Large infrastructure projects in telecommunications, trans

  18. Slide 18: Economic Forecast

    Economic Forecast-  We forecast that the economy will achieve and likely exceed the projected growth rate of 4.8% for 2005  This should be reflected in improved corporate earnings

  19. Slide 19: Outlook for the Market

    Outlook for the Market-  Barring any major economic shocks we should expect continued improvements in market performance and activity.  Market has began to position itself in anticipation of corporate earnings announcements;  Activity in the secondary bond market should pick up in the second half

  20. Slide 20: Policy Tax Incentives

    Policy Tax Incentives NAIROBI STOCK EXCHANGE

  21. Slide 21: Policy and Tax Incentives

    Policy and Tax Incentives As an incentive to encourage more listings at the NSE, the Minister proposed that newly listed companies pay corporation tax at a lower rate of 20%, for a period of 5 years, provided these companies offer at least 40% of their shares to the Kenyan public (2005); New and e

  22. Slide 22: Policy and Tax Incentives

    Policy and Tax Incentives Companies that apply and are listed shall get a tax amnesty on their past omitted income, provided they make a full disclosure of their assets and liabilities and undertake to pay all their future due taxes (2001);  Expenses incurred by companies in having their financial

  23. Slide 23: New Listings

    New Listings NAIROBI STOCK EXCHANGE

  24. Slide 24: New Listings

    New Listings New Prospects for Listing include: The Main Investment Market Segment (MIMS)  Equity Commercial Bank;  Uchumi Supermarkets Rights Issue (Kshs. 1.2 billion);  30% Government stake in Kenya Electricity Generating Company (KENGEN);

  25. Slide 25: New Listings-cont.

    New Listings-cont. New Prospects for Listing include: The Fixed Income Securities Market Segment (FISMS)  Faulu Kenya Ltd- Listed 5 year floating rate note of Kshs 500 million on 4 April 2005;  PTA Bank Ltd – Listed 7 year floating rate note of Kshs 800 million on 4 July 2005;  Athi River Mining

  26. Slide 26: Thank you

    teams eK EXCHANGE LTD. Thank you

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