Political uncertainty costs NSE investors Kshs 30B

Investors at the Nairobi Securities Exchange lost close to 30 billion shillings as political uncertainty ruined the mood in the Kenyan financial system.

The banking sector also witnessed reduced activities as inter-bank rate fell for the third straight week to 8.01 percent on Friday from 8.13 percent a week earlier.

The Central Bank of Kenya weekly report indicates that the bond market was also hit by the raging political infighting.

It has been two months of heightened political activities, with running battles between demonstrators and police officers becoming the order of the day.

The securities market which is the economic barometer of the nation says it all. In the week ending the 12th of this month, investors at the Nairobi Securities Exchange watched as their investment tanked, wiping off close to 28 billion shillings from the market.

The three indices comprising the NSE 20, NASI and NSE 25 lost 2.2 percent, 1.8 percent and 0.9 percent respectively. Investors in the banking sector lost the most with was the biggest culprits being KCB Group, Barclays Bank of Kenya and Equity Group, shedding 7.5 percent, 6.4 percent and 2.7 percent, respectively of their worth.

The central bank weekly market report says the volume of Bonds traded fell by 80 percent in the week ending October 12, 2017 with deals transacted at 267 deals, compared to 283 deals in the previous week.

The government was forced to intervene to stabilize the market with the Central Bank’s Reverse Repo Purchases and government spending of 30.6 billion shillings.

Government payments amounted to 30.4 billion shillings while tax payments amounted to 24.4 billion shillings.

Demand for treasury bills was also weak with demands standing at 10.26 billion shillings against 24 billion shillings that was on offer by the central bank.

The forex market has held steady with the Kenya Shilling exchange rate closing the week on a stable note against the American dollar trading at 103.25 against the greenback.

The shilling strengthened against the Sterling Pound, the Euro at 135.6 and 121.41 respectively.



Latest posts

Crown Motors launches the new Nissan Magnite SUV

Hunja Macharia

Kisumu keen on reviving tourism industry

Beth Nyaga

China declares all crypto-currency transactions illegal

Ronald Owili

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More