Higher expenses curb Nairobi Securities Exchange's first-half profit

NAIROBI, KENYA: Kenya's Nairobi Securities Exchange posted a 6 percent drop in pretax profit for the first half of this year after a jump in expenses outpaced revenue growth, it said on Tuesday.

The company's pretax profit was Sh99.7 million, down from Sh106.6 million in the same period last year, it said. Expenses rose 8 percent while total income increased by 4 percent.

Trading on the bourse, which is seen as a gateway for investors abroad looking for exposure to the fast-growing economies in East Africa, started the year on a subdued note but it has rebounded since June.

NSE said it had started talks with the London Stock Exchange and other foreign bourses to encourage firms to dual list.

"This is expected to bolster NSE's position as a regional powerhouse and appeal to issuers keen on attracting international investors," NSE Chief Executive Geoffrey Odundo said in a presentation.

It also said it would launch derivatives trading soon.