Market News

Pension schemes return to equities at the bourse

Nairobi Securities Exchange
Stockbrokers at the Nairobi Securities Exchange. FILE PHOTO | NMG 

The Nairobi Securities Exchange (NSE) could see heightened activity as pension schemes and institutional investors bulk up stock.

Releasing its third quarter 2019 survey results, Zamara Consulting Actuaries Schemes Survey (Z-Cass), noted renewed interest in securities in the past week, indicating optimism among investors (pension schemes) that financial stocks could soon start posting better returns.

“During the period under review most pension schemes retained most of their investments in fixed income class (government securities) that are deemed safe but this appears to be changing with most schemes looking into the bourse to tap into the lowly priced financial stocks but with anticipated high returns,” said Zamara Actuarial Services Division head Adil Suleiman.

The report that reviewed 411 pension schemes that control Sh837.6 billion found that 401 schemes that control Sh803.5 billion assigned up to 96.6 percent of their investments to fixed income assets.

Only 10 schemes put less than 65 percent of investments in the fixed income assets.