Nairobi Securities Exchange Plc · NSEKE:NSE
Nairobi Securities Exchange — Corporate Update (January 2019)
34 slides from Nairobi Securities Exchange's corporate update, Jan 30, 2019
Slide 1: NSE Press Briefing
NSE Press Briefing January 30, 2019
Slide 2: Contents
CONTENTS Economic Market 2018 2019 Kenya’s Big Overview Performance Highlights Outlook 4 Agenda and the NSE Global Regional Kenya 2
Slide 3: Economic Overview
Economic Overview
Slide 4: Global Economic Performance
Global Economic Performance • Global economic growth has been contributed by accelerated growth in the emerging markets and developing economies such as South Asia and Africa. However, advanced economies growth decelerated in the period. • China's growth rate is forecasted to decline further from 3.
Slide 5: African Economic Performance
African Economic Performance • Growth of Africa economy in 2018 has been strengthened by a relatively more supportive external environment, stronger global growth, high commodity prices and improved capital market access. • The 2019 Africa Economic Outlook - Estimated 3.5% growth in 2018, forecasted
Slide 6: Economic Growth Rate for East Africa
Economic Growth Rate for East Africa • The growth in H1 2018 was 6% while the projected growth in FY 2018 is approximated to average 6.1%. This is an improvement in comparison to 4.9% recorded in 2017. • This positive outlook is due to the region’s economic diversification and investment-driven • Th
Slide 7: Economic Growth Rate for Kenya
Economic Growth Rate for Kenya • Growth momentum will likely be sustained in 2019 as private consumption foreign direct investments and business confidence increases. However, the prevalence of the interest rate cap and tighter fiscal measures possess a challenge to sustained economic growth. • “Ken
Slide 8: Economic Growth Rate – Overall Inflation Rate
Economic Growth Rate – Overall Inflation Rate Overall Inflation rate 14 12 10 8 6 4 2 0 May July October August May July October August May July October August May July October August November November November November January January January January June June June June February April December Febr
Slide 9: CBR Trend & Performance of the Shilling against the Dollar
Economic Growth Rate – CBR Trend & Performance of the Shilling against the Dollar CBR trend Jan 2015-Dec 2019 Ksh vs Dollar 14 12 10 8 CBR 6 4 2 0 July July July November November November May September May September September January January January December March March March 2015 2016 2017 2018 Co
Slide 10: NSE 20 Share Index movement
Economic Growth Rate – CBR Trend & Performance of the Shilling against the Dollar NSE 20 share Index movement 5113 4040 3711 3186 Index 2801 2014 2015 2016 2017 2018 Comments 2014: Capital Gain Tax resulted in creation of more income inequality which affected investors decisions. 2015: Strong curren
Slide 11: Market Performance
Market Performance
Slide 12: NSE outperformed most African markets in dollar returns
. • The NSE last year outperformed most African markets in dollar returns despite the bear run, helped by the Kenya shilling’s gain on the dollar versus the depreciation seen on most regional currencies. • Market data compiled by African Alliance shows the NSE FTSE 15 Index — which tracks the bourse
Slide 13: Market Capitalization for top African Exchanges
Market Capitalization for top African Exchanges 90,000,000,000.00 80,000,000,000.00 70,000,000,000.00 60,000,000,000.00 Nairobi Securities Exchange 50,000,000,000.00 Egypt Stock Exchange 40,000,000,000.00 Nigeria Stock Exchange 30,000,000,000.00 Casablanca Stock Exchange 20,000,000,000.00 10,000,000
Slide 14: NSE Statistics 2018
NSE Statistics 2018 Summary Statistics Q4 2018 14
Slide 15: NSE Statistics 2018 (contd.)
NSE Statistics 2018 (contd.) Bond Turnover 2018 Equities Turnover 2018 • In December 25,000 2018, equity 70,000 turnover fell by 60,000 20,000 27%. 50,000 40,000 • Bond turnover fell Millions 15,000 Millions 30,000 by 48%. 20,000 10,000 • Foreign 10,000 participation fell by - Jul-18 Jan-18 Oct-18 D
Slide 16: Fixed income turnover: Treasury, corporate, infrastructure, M-Akiba bonds
• 44 Treasury bonds • 24 Corporate bonds Green bonds are regular •First mobile traded •13 Infrastructure bonds issued by 15 bonds with one Government retail bond companies distinguishing feature: in the world. USD3,242,603,393 proceeds are earmarked Treasury Bond Turnover USD 8,139,752 exclusively f
Slide 17: Average Foreign/Local Market Participation
Average Foreign/ Local Market Participation 80 70 60 Average Participation (%) 50 40 30 20 10 0 2014 2015 2016 2017 2018 Local Foreign Year 17
Slide 18: 2018 Highlights
2018 Highlights
Slide 19: Fixed Income Market in 2018
Fixed Income Market in 2018 19
Slide 20: NSE Milestones
NSE Milestones 2004: The process 2007: The Wide 2014: 2011: 2015: of clearing and Area Network The NSE 2018: The Nairobi STOCK Launch of settlement of (WAN) was self-lists NSE becomes Exchange changed its the REIT shares traded in implemented, a full member Kenya’s capital name to Nairobi market ena
Slide 21: Growth of NSE Products and Services
Growth of NSE Products and Services The NSE is continuously working with key market stakeholders to grow the existing products. The NSE Real Estate Investments Trusts (REITs) market can play a crucial role to the achievement of the government’s pillar of providing affordable housing in the country.
Slide 22: Derivatives at the NSE - NEXT
Derivatives at the NSE - NEXT NEXT is the NSE Derivatives Market that facilitates the trading of futures contracts in the Kenyan market. The NSE received approval to undertake a Pilot Phase Test for the Derivatives Market from the Capital Markets Authority. The Pilot Phase Test is aimed at testing t
Slide 23: Ibuka Program
Ibuka Program This program aims to support the growth and developmental goals of companies of all sizes through a three stage program which enables them to be investor ready and subsequently capital raise Accelerator Members can raise capital through trading their shares over a share trading platfor
Slide 24: Green Bonds
Green Bonds Research on market demand A study commissioned by the Green Bond Program Kenya with funding support from WWF-Kenya was launched in Dec 2018. The study sought to determine the green investment opportunities in the Manufacturing, Transport and Agriculture sectors and identified green inves
Slide 25: Listings
Listings • Britam Group held a bell ringing ceremony on May 21, 2018 to commemorate the listing of • 360, 888, 281 new additional shares of Britam Limited on the bourse. The Britam listing marked the first listing on the Main Market Investment Segment in 2018. • The Bank of Kigali (BK) cross-listed
Slide 26: World Federation of Exchanges
World Federation of Exchanges • The NSE has continued to enhance its reputation globally through key engagements and strategic partnerships. The Exchange became a full member of the World Federation of Exchanges (WFE) in January 2018. This has resulted to the NSE becoming an attractive destination f
Slide 27: Sustainability Initiatives
Sustainability Initiatives The 2018 Charity Trading Day • The NSE hosted the 2018 Charity Trading Day on November 2, 2018. The annual charity event brings together known personalities and capital markets stakeholders to a fun filled event, aimed at raising funds to support various charitable causes
Slide 28: 2019 Outlook
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Slide 29: Increase Listings
Increase Listings The Exchange is keen on the listing of National Oil Corporation in 2019 which will list on the NSE and cross-list on the London Stock Exchange. • Ibuka Program- To spur more listings in 2019 and onwards, the NSE in partnership with other stakeholders is currently working on a progr
Slide 30: Launch the Derivatives Market
Launch the Derivatives Market The Exchange has been satisfied with the outcomes of the overall Pilot Tests and expresses confidence in the abilities of the market participants and itself in being able to undertake the risk management, trading, clearing and settlement responsibilities required of the
Slide 31: Upgrade of the Automated Trading System
Upgrade of the Automated Trading System. First, the upgrade is informed by the NSE mandate which is to provide a world class trading system that facilitates trading of listed securities. The current system has served us well for about a decade. However, given the level of growth within this period i
Slide 32: Green Bonds
Green Bonds The NSE looks forward to the publishing of listing guidelines in Q1 2019. We will also host educative forums and carry out capacity building for the capital markets. The focus for 2019 is to continue supporting the first few green bond issuers to come to market. Further briefing sessions
Slide 33: Kenya's Big 4 Agenda and the NSE
Kenya’s Big 4 Agenda and the NSE 33
Slide 34: The End
Website: www.nse.co.ke Email: [email protected] THE END Tel: +254 (20) 283 1000
Nairobi Securities Exchange — Corporate Update (January 2019) on 6ix