Nairobi Securities Exchange PLC · NSEKE:NSE

Nairobi Securities Exchange — Nairobi Stock Exchange — Q1 2005 Earnings Presentation

21 slides from Nairobi Securities Exchange's earnings presentation, May 24, 2005

  1. Slide 1: Nairobi Stock Exchange 1st Quarter Brief

    Nairobi Stock Exchange 1st Quarter Brief Mr. Chris Mwebesa Chief Executive 24 May 2005 NAIROBI STOCK EXCHANGE

  2. Slide 2: Table of Contents

    TABLE OF CONTENTS  Market Performance  Market Developments  New Projects – Automated Trading System (ATS)  New Markets

  3. Slide 3: Market Performance

    Market Performance NAIROBI STOCK EXCHANGE

  4. Slide 4: Market Performance

    Market Performance  The NSE 20 Share Index has moved from 3094.3 points in Jan 2005 to 3227.59 points in April 2005, a 4.31% increase (an annualized increase of 17.23%).  The Index has moved from 2707.6 points from end April 2004 to 3227.59 points end April 2005, a 19.2% yoy increase.  Market Cap

  5. Slide 5: NSE 20 Share Index

    NSE 20 Share Index 3350 3250 3150 3050 2950 2850 2750 2650 2550 Jun 04 Oct 04 Feb 04 Feb 05 Dec 03 Apr 04 Dec 04 Apr 05 Aug 04

  6. Slide 6: Market Capitalization (Kshs. Billion)

    Market C apitalization (K shs. B illion) 250 270 290 310 330 350 370 390 Dec 03 Feb 04 A pr 04 Jun 04 A ug 04 (Kshs. Billion) Oct 04 Market Capitalization Dec 04 Feb 05 Apr 05

  7. Slide 7: Attributable to:-

    Attributable to:-  Leading indicators show that real GDP expanded by 2.6% in 2004, up from the earlier estimate of 2.4% and compared with 1.8% in 2003;  Economic activity strongest in the key export sectors of horticulture, tea, textiles and tourism.  Modest growth in the manufacturing and teleco

  8. Slide 8: Attributable to:-

    Attributable to:-  Counters on the NSE had positioned themselves for economic pickup.  Corporate earnings remain robust and in almost all cases earnings are resulting from top line growth.  Higher dividends payouts have boosted higher valuations for their share prices.  Market PE at about 13x is

  9. Slide 9: Equity Turnover

    Equity Turnover:-  Equity turnover has been slightly subdued due to slow adoption of the immobilization process.  When the immobilization process began in November, monthly turnover was Kshs. 1,441, 522,572 and has since increased to Kshs. 1,626,062,029 in April 2005, a 12.80% increase.  Industri

  10. Slide 10: Turnover (Kshs.Bn)

    Turnover (Kshs.Bn) 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 Dec 03 Feb 04 Apr 04 J un 04 Aug 04 Equity Turnover (Kshs.Billion) Oct 04 Equity Turnover Dec 04 Feb 05 Apr 05

  11. Slide 11: Bond Turnover

    Bond Turnover:-  Bond turnover has been subdued in the period under review and has only began to pick up as short term interest rates have stabilized.  During the 2003/2004 low interest rate regime activity in the secondary bond market was robust. In the year 2003, the bourse, recorded a bond turn

  12. Slide 12: Bond Turnover (Kshs. Billion)

    Turnover(Kshs.bn) 0.0 1.0 2.0 3.0 4.0 5.0 6.0 Dec 03 Feb 04 Apr 04 Jun 04 Aug 04 Bond Turnover Billion) Oct 04 Dec 04 Feb 05 Apr 05 Bond Turnover (Kshs.

  13. Slide 13: Market Developments

    Market Developments NAIROBI STOCK EXCHANGE

  14. Slide 14: New Corporate Strategy is Supply Focused

    New Corporate Strategy is SUPPLY focused. Main Investment Market Segment  30% of Kenya Electricity Generating Company (KENGEN) Fixed Income Securities Segment  PTA Bank year Floating Rate Kshs. 1.6 billion bond  Athi River Mining 5 year Floating Rate Kshs. 600.0 million bond  EADB second tranche

  15. Slide 15: New Projects – Automated Trading System (ATS)

    New Projects– Automated Trading System (ATS) NAIROBI STOCK EXCHANGE

  16. Slide 16: The ATS Local Area Network (LAN)

    The ATS Local Area Network (LAN)  Second phase of the market automation to be commissioned in 2H 2005 with completion planned for early 2006.  The ATS is designed to match buy and sell orders placed by Members of the NSE.  Ask prices are entered into a central electronic order book.  During trad

  17. Slide 17: Benefits

    Benefits Business Advantages:  Automated systems support scalability of operations and increased volume capacity due to the ability to handle surges in volume without disrupting business activities.  Improved Efficiency due to lower transaction costs by automating administration.  Reduce Risk by

  18. Slide 18: New Markets

    New Markets NAIROBI STOCK EXCHANGE

  19. Slide 19: The Commodities Exchange

    The Commodities Exchange  Facilitate trade in maize, tea, specialty coffee, pulses, livestock, cotton.  As a start, the Exchange has established a working group to develop a Specialty Coffee Exchange.  The infrastructure being developed for the Specialty Coffee Exchange will also be used for trad

  20. Slide 20: Objective

    Objective • Provision of a transparent price discovery mechanism that will position Kenyan commodities as independent premium brands in the international market; • Once pricing determination is visible, growers can diversify risk by selling both spot or forward derived from prevailing prices of comm

  21. Slide 21: End

    E LTD. ANG 3 @ & = Zz NAIROBI STOCK EXCHANGE

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