BusinessPeople Daily

Bourse needs to list more companies, says CMA boss

Kenya’s capital markets regulator said on Friday the Nairobi Stock Exchange (NSE) needed to attract more companies to list to offset the few large companies that dominate trade.

More than 60 companies with a total market capitalisation of Sh2.8 trillion ($27.94 billion) are listed on the exchange. But just one, the telecoms giant Safaricom, accounts for Sh1.1 trillion shillings of that, Thomson Reuters data show.

“You need to bring something else in to offset those concentrations,” said Capital Markets Authority Chief executive Paul Muthaura. Muthaura did not name any new companies planning Kenyan listings.

The government plans a $1 billion (Sh100 billion) dual listing of its state oil company by early 2019, which may help reduce the concentration at the NSE.

Market capitalisation nudged up to Sh2.8 trillion in the first quarter, compared with Sh2.5 trillion in the fourth quarter of 2017. Foreign investors comprised 57 per cent of total market turnover in March, compared with 64.6 per cent in December. –REUTERS

Show More

Related Articles