NAIROBI, Kenya, Mar 3 – The global outbreak of coronavirus has not had any direct impact on Kenya’s financial market ecosystem.
Nairobi Securities Exchange CEO Geoffrey Odundo said ongoing trends that include discounts on the prices of a variety of stocks should not be attributed to the deadly virus that left global financial markets gasping for air.
Odundo says that current trading trends reflect normal market cycles and portfolio shifts between emerging and frontier markets, as investors look to take profits during this reporting period.
“We are confident that the market will correct itself in due time. I urge investors to take up this lucrative opportunity to own a piece of Kenya’s most profitable companies at these reduced prices” he added.
He said that the fundamentals of the listed companies continue to be strongly supported by an enabling microeconomic and political environment, adding that there have been renewed growth prospects in the country both in the public and private sectors.
Globally, financial markets have taken a hit with airlines, travel companies and firms that heavily rely on China as part of their supply chain suffering the most.
Towards the end of February, losses on US markets accelerated after US health officials warned that the public should expect cases to spread, as reported by the BBC.
In the UK, the FTSE 100 fell almost 2 percent to a 12-month low of 7,018, while Japan’s Nikkei 225 index fell 3.3 percent.
The deadly outbreak has impacted economies, with an index of Chinese factory activity falling to a record low last month, while a US survey of manufacturers came in below forecast, with expectations of worse to come.
The disease that began in China has killed more than 3,100 people and infected more than 91,000, though the Asian nation has reported its lowest number of new cases in six weeks.