NAIROBI, Kenya, Aug 4 – Local Investors have shown confidence in the stock market ahead five days to the election.
Genghis Capital Research Analyst Gerald Muriuki told the Capital FM Business that in the last four weeks, local investors were the net buyers fueling support in the market that has been regaining its bullish outlook.
Meanwhile, foreign investors have been dominating the selling market, cashing out their stock values.
For the past week (from 26 Jul to 2nd August), foreigners have had a net selling of Sh751.5 million.
“Foreigners are jitterier about the political situation, while local investors have been bullish, pushing indices up. The last few days also saw indices lower or mixed compared to previous week when all three indices were closing higher with a clear uptrend,” Muriuki says.
In the last five trading days, locals have been strong in the market at an average of 52 percent compared to foreigners at 48 percent over the past five trading days.
However, foreign investors turned net buyers with net inflows of USD 310k, Thursday with overall participation rising to 67.8 percent compared to 53 percent in the previous session.
Among the top gainers, Kenya Re rose 6 percent ahead of 1H17 results scheduled for tomorrow before start of trading.
Going forward Muriuki expects local investors to pull back a little bit, holding off trading in a wait and see attitude as polls hits up.