NAIROBI, Kenya, Dec 16 – The Nairobi Securities Exchange has announced that its net profit for the year ended December 2019 will decline by more than 25 percent.
In the profit warning statement to its shareholders, NSE says its performance was adversely affected by a challenging economic environment and reduced inflow of capital from global frontier market investors who are key participants in the market.
In recognition of the challenge, NSE Chief Executive Geoffrey Odundo says the company took proactive action to sustain its performance, which included a cost rationalization strategy and diversification of its business offerings.
Additionally, NSE also launched its derivatives market, the Ibuka program and did a refocus on its date and training businesses.
Odundo however says he remains hopeful of the company’s improved performance in the coming year.
This is on account of good recovery witnessed in the market in the last quarter of 2019, which is expected to continue well in to 2020.
“Having formulated it 2020-2024 strategy, whose key focus is increasing the listed companies, enhancing our strategic alliances and leveraging on technology, we are now well positioned to provide a capital raising platform for potential issuers,” Odundo said in the statement.