NSE Suffers KSh 294 Billion Loss In A Month As Foreign Investors Exit Market

The Nairobi Securities Exchange (NSE) has lost a total of KSh 294 billion in the last 30 days following the mass exit of foreign investors.

The exit of the investors has seen the value local bourse drip to a 20-month-low despite a profit and dividend boom.

As of Friday, the market capitalization dropped to KSh 2.176 trillion up from KSh 2.471 trillion on April 13.

The most affected stocks following the investors’ exit include Safaricom, East Africa Breweries Limited (EABL), Cooperative Bank, Equity and KCB Group.

Safaricom accounted for a KSh 210 billion loss despite being the country’s most profitable company, Bizna Kenya reported.

On the other hand, share prices of KCB Group, Equity Group and Co-operative Bank have dropped by between 22.5 percent and 13.75 percent despite three banks announcing KSh 26.8 billion in dividend payouts.

“It is mostly being driven by global trends, with the higher US interest rates driving high-risk rating for countries like Kenya and lower prices for equities. Even in the Eurobonds we are seeing higher rates,” a research analyst told a local daily.

He adds; “Fundamentally most companies are doing well posting good results and paying dividends. Despite that, foreigners are still selling.”

NSE was established in 1954 as the Nairobi Stock Exchange as a voluntary association of stockbrokers in the European community registered under the Societies Act in British Kenya.

The shares of the Nairobi Securities Exchange are listed and traded on its own main board, under the symbol NSE.

It is governed by an eleven-person Board of Directors with Kiprono Kittony serving as the Chairman of the group and Geoffrey Odundo as the CEO.