Capital markets are a broad category of markets facilitating the buying and selling of equity (stocks) and debt securities for medium-term and long-term durations, of one year or more. Capital markets channel savings and investment between suppliers of capital such as retail investors and institutional investors, and users of capital like businesses, government and individuals. Capital markets are vital to the functioning of an economy, since capital is a critical component for generating economic output. Capital markets include primary markets, where new stock and bond issues are sold to investors, and secondary markets, which trade existing securities.
The NSE 20 Share Index opened closed the week at 3642.9 points. 1.08 per cent higher than the previous week. Market capitalization rose by 0.58 per cent over the previous week to close at KES 2225.20Bn. This was influenced by a rise in banking and technology sector representatives. Telecommunication and Technology sectors dominated trading, accounting for 41.22 percent and 30.66 percent, respectively, of the total shares traded during the week under review.
Overall stock turnover ratio (calculated by dividing the value of domestic shares traded by their market capitalization) declined by 11.62 per cent over the previous week’s performance signaling decrease in liquidity-traded shares on the bourse.