NAIROBI, Kenya
The Nairobi Securities Exchange’s income for 2012 grew 13.5% to Sh384.9 million from Sh338 milion the previous year, as the market defied election jitters to record high stock prices and turnover. Equity turnover rose 11.0% from 2011’s Kshs156.1 billion to Kshs173.6 Billion.
The proportion of equity transactions executed by foreign investors averaged 49.2%, an indication of continued heavy presence of foreign investors at the NSE. In the same period, secondary market activity in the fixed income market segment rose 17.0% to Kshs1,141.4 billion from Kshs974 Billion recorded the previous year. Market capitalisation rose by an impressive 46.5% to Kshs1.27 trillion ($14.53 billion).
This was revealed at the NSE’s 59th Annual General Meeting (AGM) held at the Sarova Stanley Hotel today. The chairman, Mr Eddy Njoroge, briefed the members on the financial performance of the Exchange in 2012. He noted that the overall performance of Capital Markets improved in 2012 in comparison to 2011. The chairman confirmed that in 2012, the Principal Secretary for the National Treasury, on behalf of the Government of Kenya, and the CMA Investor Compensation Fund were each allotted 1.25 million shares; translating to a 5.1% stake for each of them. The remaining 22 shareholders each have a stake of 4.08%.
It was resolved that a first and final dividend for the year ending December 31, 2012, of Kshs.1.00 per issued share would be paid to the shareholders in the register.
Meanwhile, Mrs. Farhana Hassanali (an Independent Director) retired and was replaced by Ms. Sharon Maviala who was elected by the shareholders.
Maviala is an advocate and has previously served as the Company Secretary for Pan African Insurance Company Ltd. She is currently a director of Pinnacle Projects. The Chairman noted that, her experience in the real estate sector would be very useful to the Board as the Exchange introduces Real Estate Investment Trusts.
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