Wed Aug 02 22:42:02 EAT 2017
Almost two thirds of the value of shares at the Nairobi Securities Exchange is in only 5 of the 63 listed firms. This, according to the regulator, is a risk which is worsened by the statistic that only 10 companies actually control the floor, holding 80.5% of the total market capitalisation.
The Capital Markets Authority's Market Soundness Report of 2017 shows that Safaricom is yet again in another dominance conversation given that alone, the telecom represents 40.99% of the NSE's market capitalisation. A distant second is East African Breweries whose market cap is 9.21% of the NSE value, then British American Tobacco Kenya at 6.41%. Fourth, at 5.21%, is KCB Bank and Equity Group follows at 3.81%. These 5 collectively hold 65.61% of the total listed capitalitalisation. The CMA is looking to increase the number of local companies listed at the bourse as well as have cross listings within the continent so as to help mitigate the risks.