NSE CEO: Markets experiencing volatility but bourse still resilient

The Nairobi Securities Exchange CEO, Geoffrey Odundo, has reassured investors that Kenya's stock market remains resilient despite the challenges posed by global dynamics such as heightened inflation and rising interest rates. In an exclusive interview with CNBC Africa, Odundo highlighted that although there are outflows in the market, the NSE continues to perform well in various asset classes. Despite the market facing volatility, Odundo remains optimistic about the opportunities it presents to investors. Odundo pointed out that the recent high activity in the fixed income market, with a single-day trading high of 16.5 billion shillings, showcases the market's diversity and potential. He emphasized the need for a comprehensive assessment of the market beyond just the stock indices to truly understand its performance. Odundo acknowledged the current global economic challenges affecting markets worldwide but stressed that Kenya's market, as a member of the MSCI Frontier Market Index, is not immune to these influences. The CEO further explained that the high interest rates locally, with treasury bill rates reaching 15.5 percent, have impacted investor sentiment towards equities. Despite these challenges, Odundo highlighted that the NSE has maintained turnover levels for the year, signaling investor resilience and active trading. Regarding the recent decline in the NSE index, Odundo reassured investors that it is a short-term phenomenon and emphasized the importance of looking at a broader range of indices to gauge market performance accurately. He highlighted the introduction of the N10 index, focusing on the 10 most liquid stocks, as a more concentrated indicator of market stability. In his closing remarks, Odundo urged investors to see the current volatility as an opportunity to enter the market at attractive valuations. He praised the government's efforts to stabilize the economy and improve fiscal consolidation, providing a positive outlook for the capital markets. Odundo also mentioned the recognition received from FTSE and MSCI for Kenya's market structure and performance, indicating a strong foundation for future growth. Despite the challenges posed by global economic conditions, Odundo's confidence in the resilience of Kenya's stock market and the promising opportunities it presents for investors remains unwavering. The NSE CEO's insights provide a reassuring perspective amid the current market uncertainties and demonstrate the potential for growth and stability in the face of ongoing volatility.