The Kenyan Wall Street’s Post

Foreign investor outflows are expected to continue defining the performance of the Nairobi Securities Exchange PLC (NSE) in the second half of 2023. https://bit.ly/3rILzHl

For investment professionals only. In our view, the macro and market backdrop continues to be favourable for all types of fixed income – from the most liquid and highest quality issuers, to local currency emerging markets and high yield names on a selective basis. Find out more: https://lnkd.in/ewK8pay4 Capital at risk. #MandGinAsia #Investmentcrossroads

For investment professionals only. In our view, the macro and market backdrop continues to be favourable for all types of fixed income – from the most liquid and highest quality issuers, to local currency emerging markets and high yield names on a selective basis. Find out more: https://lnkd.in/enmTjvSM Capital at risk. #MandGinAsia #Investmentcrossroads

Foreign Investor Boost Expected as NSE Gets Green Light from FTSE Russell The Nairobi Securities Exchange (NSE) is set for growth in foreign investor activity following the lifting of restrictions by leading global index provider Financial Times Stock Exchange (FTSE) Russell Index. This move comes after improved access to dollars in Kenya's forex market, which boosts investor confidence. FTSE Russell scrutinized the Kenyan market in 2022 due to reports of challenges faced by foreign investors in accessing dollars from the local forex market for dividend repatriation and share sales. This dampened investor sentiment, reducing inflows and impacting the NSE's turnover and price discovery. However, in a recent statement, the NSE announced that it had been reclassified from a restricted market to a pass by the FTSE Russell Index Governance Board in March 2024. This reclassification is expected to unlock foreign investor inflows, which typically contribute nearly 60 percent of the NSE's daily turnover. According to the NSE, the improvement in classification is a result of the FTSE equity country classification interim review of Kenya's equity market against various technical criteria. The decision signals a positive shift in investor perception and is anticipated to revitalize trading activity on the exchange. The last review in September last year had highlighted liquidity issues affecting foreign investors' ability to repatriate funds, but subsequent improvements paved the way for the recent lifting of restrictions. Meetings between the London-based index provider and Kenya's Capital Market Authority facilitated this decision. #NSE #FTSERussell #ForeignInvestors #KenyaCapitalMarkets #InvestorConfidence

Nairobi Securities Exchange PLC’s upgrade by FTSE Russell reflects rising confidence in Kenya’s equity market. 👉 Kenya’s equity market has received an upgrade on its classification by the FTSE Russel Index from “Restricted’ to “Pass” on the repatriation of capital and income. 👉 This development partly indicates that Kenya is now a maturing market, characterised by increased transparency, liquidity, and a growing investor confidence. 👉 Across Africa, data shows that an estimated $700 million was reported held in 11 African countries, with Nigeria accounting for the lion’s share. Learn more 👉 https://cutt.ly/Ew8aC7Vh #stocks #stockmarketnews #nse #kenya #africa

The Nairobi Stock Exchange (NSE) has seen a surge in trading activity as the Kenyan shilling appreciates, leading to an increase in investor wealth by KSh 351 billion in just seven weeks, from February 15th to April 4th 2024. Market capitalization, a measure of investors’ wealth, closed at Ksh 1.772 trillion on, April 4th, 2024, compared to Ksh 1.421 trillion recorded on February 15th, 2024. https://lnkd.in/d5sN8Szi

Regulatory bonds issued by CEE banks have emerged as a goldmine, delivering average returns of 14.4% in 2023. For investors willing to exploit the "knowledge gap", these bonds allow to significantly enhance their portfolios risk/return profile and diversification. Check out our latest #fixedincome Investment Focus to learn more about the #MREL bonds issued from this region and why we consider them a valuable asset for both emerging and developed markets portfolios. #emergingmarkets #sustainability #investments https://lnkd.in/d2fe_imt

US Dollar vs Emerging Markets Equities Last week the Consilio Wealth Advisors team was discussing the inverse relationship between US Dollar value and emerging market equity returns. USD strength historically leads to a sell-off in EM. A weakening USD has the opposite effect. Many of the EM/BRIC countries borrow in USD to fund the growth of their countries. When USD becomes more valuable or interest rates increase, it creates a challenge to service the same debt requirements. Disclosure: The information provided is for educational and informational purposes only and does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status or investment horizon. You should consult your attorney or tax advisor. #investing #financialplanning

The Nigerian equity market witnessed a tumultuous week as investors grappled with significant losses totaling N1.57 trillion, reflecting the ongoing volatility and uncertainties in the financial landscape. Throughout the week, market dynamics and shifting fundamentals, including a high-interest rate environment, mixed macroeconomic indicators, and alternative investment yields, weighed heavily on investor sentiment. Tap the link in our bio to read more. #NigerianEquityMarket #StockMarket #MarketPlunge #Investors #financialloss

East Africa’s cross-listed firms have been hit in regional markets as a result of declining trade volumes and poor liquidity of shares, signalling the rough ride that policy makers are facing in the integration of regional capital markets. This is largely due to a limited supply of cross-listed shares, exchange rate risks and manual settlement operations, which are choking cross-border trading activity, while obstructing regional investors from owning part of the region’s big companies. Other factors hindering trading are the investor exposure risks in the region, trading in multiple currencies, and absence of harmonised regulatory framework and the varying levels of development of regional stock markets. https://lnkd.in/gtAK6kXB