NAIROBI, Kenya, Sep 5 – Investors’ wealth at the Nairobi Securities Exchange (NSE) is continuing to decline owing to the political uncertainty in the country, having lost Sh123 billion on Friday and Monday this week.
Genghis Capital Research Analyst Gerald Muriuki says the market is expected to back the downward trend in the coming days following the Supreme Court ruling on the Presidential election results on Friday.
Panic selling after the Court decision saw Sh70 billion wiped off from the exchange triggering a trading suspension for half an hour, ending the day with a Sh90 billion paper loss.
“The Supreme Court decision came as a surprise. Nobody really expected such a decision and financial markets does not like surprises. We expect a repetition of yesterday’s trading in today’s session and we are already seeing a lot of stocks coming down,” Muriuki said.
He, however, is hopeful that the Local investors will come in support of the market with expectations of stability by the end of the week.
“By the end of the week, we expect the market to be a little bit stable, mainly supported by local investors; however this will be driven by the political rhetoric going forward.”
Uchumi, Frame Tree Group and Bamburi Cement are the gainers in the las hour while Express, Olympia Capital and Kenya Re Insurance have lost ground.
Meanwhile, The shilling is currently trading at 103.20 against 103.40 shillings to the dollar.
CBA’s Treasury Department says the shilling is trading in a tight range against the dollar in today’s session as the market resumes to normalcy post the supreme court decision from last week.