Use of shares for loans rises in second quarter

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CMA director, Regulatory and Policy, Luke Ombara. FILE PHOTO | NMG

The volume of shares used as collateral for loans rose by 77.5 million units in the second quarter of the year, halting a decline that had been seen since the first quarter of 2022.

Latest statistics from the Capital Markets Authority (CMA) shows that stock market investors put up 6.35 billion shares in various listed firms under pledge for loans by the end of June, up from 6.28 billion units at the end of March.

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Note: The results are not exact but very close to the actual.