The Nairobi Securities Exchange (NSE) presented a mixed performance during the second quarter of 2024, as detailed in the latest Capital Markets Authority (CMA) Quarterly Statistical Bulletin.

While the equity market exhibited signs of growth, the bond market experienced a downturn.

Equity trading activity saw a notable uptick, with turnover surging by 48.9 per cent to Sh28.39 billion compared to the preceding quarter.

However, this was not mirrored in the volume of shares traded, which dipped marginally by 0.65 per cent.

Consequently, the NSE All Share Index retreated by 3.18 per cent to 109.49 points.

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In contrast, the bond market encountered a cooling period.

Turnover contracted by 29.4 per cent from the robust Sh458.2 billion recorded in the first quarter to Sh323.61 billion in the second.

A quarter-on-quarter comparison paints a somewhat different picture.

The NSE All Share Index climbed by 2.33 per cent to 109.49 points, while equity turnover surged by an impressive 97.23 per cent to Sh28.39 billion.

The bond market, on the other hand, demonstrated significant growth, with turnover skyrocketing by 119.54 per cent from Sh147.41 billion in Q2 2023 to Sh323.61 billion in the corresponding period of 2024.

These developments culminated in a slight increase in the NSE market capitalisation, which rose from Sh1.67 trillion at the end of June 2023 to Sh1.71 trillion a year later.

While the equity market's performance is cause for optimism, the contraction in bond turnover warrants close monitoring.

The underlying factors driving these trends, such as investor sentiment, economic conditions, and government policies, will be crucial in determining the trajectory of the NSE in the coming quarters.