Nairobi Securities Exchange PLC · NSEKE:NSE
Nairobi Securities Exchange — Nairobi Stock Exchange — Q2 2005 Earnings Presentation
22 slides from Nairobi Securities Exchange's earnings presentation, Aug 3, 2005
Slide 1: Nairobi Stock Exchange 2nd Quarter Brief
Nairobi Stock Exchange 2nd Quarter Brief Mr. Chris Mwebesa Chief Executive 3 August 2005 NAIROBI STOCK EXCHANGE
Slide 2: Table of Contents
TABLE OF CONTENTS Market Performance Overview Market Outlook
Slide 3: Market Performance Overview Quarter 2 2005
Market Performance Overview Quarter 2 2005 NAIROBI STOCK EXCHANGE
Slide 4: 2nd Quarter Performance Overview - The bullish market in 2005
2nd Quarter Performance Overview- The bullish market in 2005 Market Indicators- Mar. to June 2005 Mkt. indicator Mar. 2005 June % 2005 Change NSE 20 Share Index 3,208.66 3,972.15 23.79 Mkt Cap.(Kshs. Bn) 329.01 420.32 27.75 No. of shares 31.99 101.95 218.69 Traded (Mn) Equity Turnover 1,513.14 3,838
Slide 5: Six months market performance overview
Six months market performance overview- The bullish market in 2005 Market Indicators- Jan. to June 2005 Mkt. indicator Jan. June % 2005 2005 Change NSE 20 Share Index 3,094. 3,972.15 28.37 30 Mkt Cap.(Kshs. Bn) 321.23 420.32 30.84 No. of shares 38.81 101.95 162.69 Traded (Mn) Equity Turnover 1,554.
Slide 6: Best stocks by share price appreciation
Six months market performance overview- The bullish market in 2005 Best stock in terms of share price appreciation between 1st Jan. to 8th July 2005 Company Share Price Kshs High Low Change % Change Kenya Airways 82.00 17.15 64.85 378.13 Mumias Sugar 37.50 8.00 29.50 368.75 E.A. Cables 140.00 50.00
Slide 7: 2005 vs 2004 Market Performance
2005 vs 2004 Market Performance Mkt. indicator 2004 Cumulative % of 2004 Stats 2005 Achieved No. of shares Traded (Mn) 625.29 424.47 67.88 Equity Turnover (Kshs Mn) 22,321.0 17,647.52 79.06 5 No. of Equity Deals 127,730 84,127 65.86 Bonds Turnover (Kshs Mn) 34,553.4 6,754.00 19.55 1 No. of Bond Deal
Slide 8: Market performance 1 July to 29 July 2005
Six months market performance overview- The bullish market in 2005 Market Indicators- 1 July to 29 July 2005 Mkt. indicator 30 Jun. 29 Jul. % 2005 2005 Change NSE 20 Share 3,972.15 3,982.0 0.25 Index 0 Mkt Cap.(Kshs. Bn) 420.32 439.73 4.62
Slide 9: Market Performance – Bull Market
Market Performance – Bull Market 4,500 500 450 4,000 400 3,500 350 NSE 20-Share Index 3,000 300 (Ksh. Billion) Market Cap. 2,500 250 200 2,000 150 1,500 100 1,000 50 29 Jul -05 8 Jul-05 Nov-04 10 Sep-04 Jun-03 Jun-04 May- 05 Sept-03 Dec-02 Dec-03 Feb-05 Mar-03 Mar-04 Month NSE 20 -Share Index Market
Slide 10: 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 3,987.04 on July 22, 2005, a rise of 2, 943.31 points, 282.00% change. •the market capitalization has moved from Ksh. 85.79 billion to Ksh. 433.10 billion on July 15, 2005, posting
Slide 11: Reasons for the Bullish Equity Market
Reasons for the Bullish Equity Market. Improved Economic prospects: Agriculture, Tourism, Transport and Telecommunication sectors. Real GDP is forecast to increase from a growth rate of 4.3% in 2004 to 4.8% in 2005 and 5.1% in 2006; Economic activity strongest in the key export sectors of hort
Slide 12: Reasons for the Bullish Equity Market
Reasons for the Bullish Equity Market. Improved corporate earnings Introduction of Central Depository System ( CDS) – boosted liquidity
Slide 13: Outlook for Economy
Outlook for Economy NAIROBI STOCK EXCHANGE
Slide 14: Threats
Threats:- Inflation: could trigger off contractionary monetary policy; If the Government has to resort to the domestic markets for extra funds than anticipated to finance its deficit, this coupled with strong demand for credit from the private sector could cause interest rates to rise higher and
Slide 15: Threats (Contd)
Threats (Contd):- The garment export sector (EPZ) after 4 years of consecutive growth, is now under threat following the end of the Multi Fibre Arrangement in Jan 2005, which has exposed Kenyan producers to low cost Asian producers, particularly China. The industry is expected to continue to suffe
Slide 16: Opportunities
Opportunities:- Kenyan goods continue to exhibit strong export performance there is potential for further growth into the COMESA region and Southern Sudan; Coffee industry reforms could notch up growth by upto 1% per annum in 2006 – 7; Large infrastructure projects in telecommunications, trans
Slide 17: Economic Forecast
Economic Forecast- We forecast that the economy will achieve and likely exceed the projected growth rate of 4.8% for 2005 This should be reflected in improved corporate earnings
Slide 18: Outlook for the Market
Outlook for the Market- Barring any major economic shocks we should expect continued improvements in market performance and activity. Market has began to position itself in anticipation of corporate earnings announcements; Activity in the secondary bond market should pick up in the second half
Slide 19: Policy Tax Incentives
Policy Tax Incentives NAIROBI STOCK EXCHANGE
Slide 20: Policy and Tax Incentives
Policy and Tax Incentives As an incentive to encourage more listings at the NSE, the Minister proposed that newly listed companies pay corporation tax at a lower rate of 20%, for a period of 5 years, provided these companies offer at least 40% of their shares to the Kenyan public (2005); New and e
Slide 21: Policy and Tax Incentives
Policy and Tax Incentives Companies that apply and are listed shall get a tax amnesty on their past omitted income, provided they make a full disclosure of their assets and liabilities and undertake to pay all their future due taxes (2001); Expenses incurred by companies in having their financial
Slide 22: End
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Nairobi Stock Exchange — Q2 2005 Earnings Presentation on 6ix