Bond turnover dips to year-to-date low at NSE

Bond turnover in the secondary market at the Nairobi Securities Exchange (NSE) fell to its lowest level this year in April as activity across the market slowed down on tighter restrictions due to coronavirus pandemic.

Market data shows turnover stood at Sh29.3 billion last month, more than half compared to the Sh65.7 billion worth of securities traded in March.

Equities turnover was also depressed last month, coming in at Sh12.6 billion compared to Sh19 billion worth of shares traded in March.

Analysts at Cytonn Investments said the slowdown in activity was due to a preference by investors to hold on to hard cash amid the economic uncertainty wrought by the virus outbreak, which has seen about a 1,000 confirmed cases by on Wednesday.

Investors normally turn to the bonds market in times of uncertainty, seeking the security of ‘isk-free’ government paper that has more stable returns compared to the other, more volatile asset classes.