NSE halts trading for 30 minutes to stem panic selling

The Nairobi Securities Exchange (NSE) has resumed trading after it halted business for thirty minutes between 12.30pm to 1pm after the benchmark index the NSE 20 share lost 9.2 percent of its value following the decision by the Supreme Court to nullify the presidential election.

The market had lost about 5 percent before trading was suspended. The NSE halted the trading to stem panic selling.

The banking sector was the heavily affected with KCB losing about ten percent followed by Equity bank shares which shed 9 percent.

The announcement was unprecedented, at least not for the securities market. And immediately the verdict was delivered, this plunged into a bloodbath with panicky retail investors dumping their shares in the market.

By the time trading was suspended for 30 minutes the Nairobi Securities Exchange 20 share index had lost 9.2 inching closer to 10 percent circuit breaker rule.

The most affected counters were the banking sector where KCB lost about 10 percent of its value followed by Equity Bank at 9.7 percent.

The NSE index dropped to below the 4,000 mark to 3,956 following the massive sell-offs. Traders at Genghis capital said the market was reacting to the ruling and it was expected to recover later Friday afternoon.

Only three shares appreciated marginally led by Kakuzi limited appreciated that gained by 6 shillings while Fahari REITS and Longhorn Kenya limited gained 30 cents each.

  

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