Nairobi exchange’s data revenue rallies to Sh93m


Nairobi Securities Exchange. FILE PHOTO | DIANA NGILA | NMG

Nairobi Securities Exchange recorded a 78.3 percent surge in revenue from the sale of data in the year ended December, with the bourse operator attributing the performance to marketing targeting local and international investors.

The company booked revenue of Sh93.5 million from the data sets such as weekly statistics in the review period, up from Sh52.4 million the year before.

Data now brings more revenue than fees on bond trades which increased 18.4 percent to Sh79.3 million from a restated Sh66.9 million.

“Finally on the information services front the team embarked on marketing reliable and credible market data in NSE possession,” NSE’s chief operating officer David Wainaina says in the company’s latest annual report.

“This was done at a local and international level resulting in a 78 percent growth in data revenue … We noted the increased appetite by data consumers to assist in making investment decisions. This was channelled through licensed data vendors as well as the NSE Website.”

The increase in data sales has helped reduce the company’s reliance on fees charged on share trades and which declined to Sh225.8 million from Sh329.7 million.

The lower revenue from the mainstay equities transactions was attributed to a reduction in shares traded as well as the bear market.

Falling share prices have the effect of reducing NSE’s transaction levy which is charged at a rate of 0.12 percent of the gross value of an order.

The NSE offers data products to a wide variety of domestic and international clients including data vendors, investment advisors and fund managers.

Data vending income is fees charged for the sale of trading data statistics. This is charged either on a lumpsum, monthly, quarterly or annual basis.

The data, which was previously available for free to investors, includes weekly bonds and equities statistics, real-time trading data, historical trading data, monthly statistical bulletins, and monthly statistics on investment bank and stockbroker trade volumes.

The daily equities price list costs Sh350 for local buyers while the weekly equities price list is priced at Sh1,340, according to the NSE website.

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