Nairobi Securities Exchange PLC · NSEKE:NSE

Nairobi Securities Exchange — Nairobi Stock Exchange — Q3 2005 Earnings Presentation

25 slides from Nairobi Securities Exchange's earnings presentation, Oct 5, 2005

  1. Slide 1: Nairobi Stock Exchange 3rd Quarter Brief

    Nairobi Stock Exchange 3rd Quarter Brief Mr. Chris Mwebesa Chief Executive 5 October 2005 NAIROBI STOCK EXCHANGE

  2. Slide 2: Table of Contents

    TABLE OF CONTENTS  Market Performance Overview  Market Outlook

  3. Slide 3: Market Performance Overview Quarter 3 2005

    Market Performance Overview Quarter 3 2005 NAIROBI STOCK EXCHANGE

  4. Slide 4: 3rd Quarter Performance Overview

    3rd Quarter Performance Overview - Market Indicators: 2nd Qtr compared to 3rd Qrtindicator Mkt. for year 2005 Apr. - Jun. Jul.- Sep. % 2005 2005 Change NSE 20 Share Index 3,972.15 3,832.69 -3.51 Mkt Cap.(Kshs. Bn) 420.32 449.79 +7.01 No. of shares 197.36 337.33 +70.92 Traded (Mn) Equity Turnover 7,8

  5. Slide 5: 9 Months Market Performance

    9 Months Market Performance Market Indicators - January to September 2005 Mkt. Indicator Jan. Sept. % Change 2005 2005 NSE 20 Share Index 3,094.3 3,832.69 +23.86 0 Mkt Cap.(Kshs. Bn) 321.23 449.79 +40.02 No. of shares Traded 38.81 150.99 +289.05 (Mn) Equity Turnover 1,554.6 2,759.43 +77.50 (Kshs.Mn)

  6. Slide 6: 2005 vs 2004 Market Performance

    2005 vs 2004 Market Performance Mkt. Indicator 2004 Cumulative % of 2004 Stats 2005 Achieved No. of shares Traded 625.29 647.47 +3.55 (Mn) Equity Turnover (Kshs 22,321.05 24,261.57 +8.69 Mn) No. of Equity Deals 127,730 123,567 -3.26 Bonds Turnover (Kshs 34,553.41 9,402.15 -72.79 Mn) No. of Bond Deal

  7. Slide 7: NSE 20-Share Index and Market Capitalization

    NSE 20-Share Index 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 Dec-03 Jan-04 Feb-04 Mar-04 April-04 May-04 Jun-04 Jul-04 Aug-04 10 Sep-04 24-Sep-04 Month 13-Oct-04 Nov-04 NSE 20 -Share Index Dec-04 Jan-05 Feb-05 Performance Mar-05 Equity Market Apr-05 Market Capitalization May- 05 Jun-05 1 Jul-0

  8. Slide 8: Bond Market Performance Overview Jan–Sept 2005

    Bond Market Performance Overview Jan – Sept 2005 2,000 1,800 1,600 K s h s . M illio n s 1,400 1,200 1,000 800 600 400 200 0 Bonds

  9. Slide 9: Interest Rate Trends

    In t e re s t ( % ) 10 0 1 2 3 4 5 6 7 8 F eb-04 9 M ar-04 Apr-04 M a y- 0 4 Ju n - 0 4 Ju l- 0 4 Aug-04 Sep-04 O ct-0 4 N o v- 0 4 Month D e c- 0 4 91day TBill Ja n - 0 5 F eb-05 M ar-05 Apr-05 2004 – To Date M a y- 0 5 Average Monthly Ju n - 0 5 182 day Tbill Interest Rate Trends Ju l- 0 5 Aug-05

  10. Slide 10: Inflationary Trends

    1 2 -m o n th in fla tio n 10 12 14 16 18 0 2 4 6 8 A p r-0 5 M a y -0 5 J u n -0 5 Month Underlying J u l-0 5 Inflationary Trends Overall A u g -0 5

  11. Slide 11: Trend: NSE Share Index & Market capitalization

    Trend: NSE 20 Share Index & Market capitalization Since Sept 30 2002 :- •the NSE 20 Share Index has moved from 1043.73 to 3,832.69 on 30 September, 2005, a rise of 2,788.96 points, a 267.21% change; •the market capitalization has moved from Ksh. 85.79 billion to Ksh. 449.79 billion on 30 September,

  12. Slide 12: Capital Raising Activities in the Equity Market

    Capital Raising Activities in the Equity Market Uchumi Supermarkets (the largest supermarket chain in Kenya) Rights Issue to raise Kshs. 1.2 billion:-  Success trading of Uchumi Supermarkets rights concluded on 30 September 2005;  Announcement of the results of the rights will be on 7 October 2005

  13. Slide 13: Capital Raising Activities in the Equity Market

    Capital Raising Activities in the Equity Market  The key shareholders of Uchumi – ICDCI, ICDC and KWAL Holdings traded a majority of their rights through the Stock Exchange;  Their joint holding in Uchumi will be diluted from 51.5% to 23.6%, resulting in a more distributed shareholding; Institutio

  14. Slide 14: Capital Raising Activities in the Equity Market

    Capital Raising Activities in the Equity Market  Can also be considered a partial privatisation by the Government through the Nairobi Stock Exchange;  The process was transparent and accessible to all Kenyans;  The same process can be used for other institutions in which the Government is still t

  15. Slide 15: Capital Raising Activities in the Bond Market

    Capital Raising Activities in the Bond Market The Athi River Mining Medium Term Note is a first because of the following reasons:-  First credit rated corporate bond;  First purely corporate, unsecured bond;  The NSE will work with the Capital Markets Authority and market players to facilitate th

  16. Slide 16: Capital Raising Activities in the Bond Market

    Capital Raising Activities in the Bond Market Issue Size Ksh 800,000,000 Issuer’s Credit A (Long Term) Rating Principal Semi Annually from October Redemptions 2007 Final Repayment October 2010 Date Purpose Capital expenditure (Clinker Plant) and repayments Interest Floating rate based on the 91 day

  17. Slide 17: Other Issues in the Pipeline

    Other Issues in the Pipeline The Main Investment Market Segment (MIMS)  Introduction of Equity Commercial Bank issued shares;  30% of Kenya Electricity Generating Company (KENGEN); The Fixed Income Securities Market Segment (FISMS)  EADB second tranche of Kshs. 700.00 million bond;  Celtel mediu

  18. Slide 18: Outlook for Economy

    Outlook for Economy NAIROBI STOCK EXCHANGE

  19. Slide 19: Economic Forecast

    Economic Forecast-  The Central Bank of Kenya forecasts a real GDP growth rate of 5.0% for 2005/06 (using the new System of National Accounts (1993 SNA);  This should be reflected in improved corporate earnings particularly in the following sectors:- – Tourism; – Agriculture particularly Horticult

  20. Slide 20: Sectoral Export Earnings Growth and Credit Expansion

    Sectoral Export Earnings Growth Export Export Earnings Growth (Yr to Jun 2005) Tourism 25.0% Horticult 13.3% ure Tea 5.0% Credit Expansion to Various Sectors Credit Growth (Yr to Jun 2005) Private households 60.0% Manufacturing 26.2% Transport and 38.7% Communications

  21. Slide 21: Threats: Political risk and Constitutional Referendum

    Threats:-  The political risk and uncertainty over the outcome of the Constitutional Referendum: – It is slowing the momentum of structural reforms which are best placed to be implemented now, when Kenya’s export led recovery can provide a smoothening effect; – It could also delay investment spendi

  22. Slide 22: Threats: Crude oil prices and electricity constraints

    Threats:-  Imported crude oil price inflation: – Caused by market fears about supply shortfalls and potential future shortages, especially of refined products, that are driving price increases make it more challenging for the Central Bank of Kenya to meet its inflationary target of 5% by end June 2

  23. Slide 23: Reforms mentioned in the previous quarterly brief

    The previous quarterly brief had mentioned the following reforms:-  Coffee industry reforms could notch up growth by upto 1% per annum in 2006 – 7;  Large infrastructure projects in telecommunications, transport and electricity, if these materialise, real GDP growth can exceed 5.1% in 2006; Additi

  24. Slide 24: Outlook for the Market

    Outlook for the Market-  Barring any major economic and political shocks we should expect continued improvements in market performance and activity;  Market has began to position itself in anticipation of new issues and anticipated increased corporate earnings;  Activity in the secondary bond mar

  25. Slide 25: End

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

Nairobi Stock Exchange — Q3 2005 Earnings Presentation on 6ix