At the close of business on Friday last week, Satrix MSCI World Feeder EFT was up 9.99%, making it the second highest price gainer at the NSE.
This was after Tuesday’s activity that involved a big transaction on this counter. Some 19, 500 units of Satrix ETF was bought at KSh 809.00 each, translating to KSh 15.7 million. This was on 19th August 2025. On Friday of the same week, a trader who had bought these units began selling some of them, at KSh 892.00 each, almost 10% higher.
Satrix EFT closed trading on that Friday at KSh 892.00 from the previous KSh 811.00. The counter closed its trade on July 17th 2025(when it listed and began trading at the NSE through an IPO) at KSh 761.00. The stock has since gained 17.2 per cent on that price valuation, placing it at position 39th at the NSE in terms of year-to-date performance.
While this sounds like smart trade and free market dynamics at play, some analysts warn of underlying dangers that face the not so savvy retail investor. Across the world, other ETFs tracking the same MSCI World Index-like URTH in New York or SWDA in London-were up only about 0.5% that week. The Johannesburg-listed SATRIX was actually down 1.25% at the South African bourse. The question remains: Why should Nairobi’s Satrix show a +10% price gain?
> What Investors Should Watch Out For at the NSE This Week
Analysts insist that with thin trades at the NSE, one big trade can distort the price.
The Market Marker is supposed to quote, based on Johannesburg prices (adjusted for exchange rates). But at the NSE where retail investors are mostly buy-and-hold and daily trades light, a single large player can set the tone.
For the retail investor who logs into the NSE and sees a +10% in a week, this might look like an opportunity. But in reality, that gain is not driven by global performance. It could just be a side effect of shallow local trading.
The Danger? Those who buy Satrix at the NSE could be doing so at an inflated price, since the index might be flat or even negative. When liquidity dried up, one is left holding an overpriced position.
Cross listing gives investors access to global opportunities. But without active participation and thin liquidity, as is the case at the NSE, local prices can be unrealistic and present many hidden risks to the retail investor. Questions still linger on whether the large trades and selling offs witnessed in this counter could be someone else’s exit strategy.
The Satrix MSCI World Feeder (also known as “Satrix MSCI World”) Exchange Traded Fund (ETF) seeks to track the performance of the MSCI World Index, which offers investors access to a broad range of companies from developed markets within a single fund.
The index represents a broad exposure to a wide range of global companies within 23 developed countries. There is at least 85% coverage of the listed equities in each of the countries included in the index.
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The MSCI World index is well diversified across sectors, as it holds 25% Info Tech stocks, 17% Financials, 10% Health Care, 11% in Industrials and the rest in other sectors. 71% of the index is US exposure, followed by 10% in Europe-except UK and 15% in other Developed Markets.
Top companies in the index include Nvidia Corp, Microsoft Corp, Apple Inc, Amazon Com Inc, Meta Platforms Inc, Broadcom Inc, Tesla Inc, Alphabet Inc and JPMorgan Chase & Co.
Satrix ETF offers diversification benefits to Kenyan investors by giving them exposure to the world’s largest companies, enabling them to also diversify away from Kenyan shillings.
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