NSE goes live at The Stanley to spur investor interest

In a journey reminiscent of the old days, the Nairobi Stock Exchange (NSE) returned to The Stanley Hotel where it started its operations in the 50s.

Whereas in the past share trading was transacted over a cup of coffee, this time round NSE went back at a more advanced level as its trading was beamed live to the hotel’s Exchange Bar.

However, the same cannot be said of many investors who still hope their investment will scale northward.

The expected upward journey of their share investment is yet to materialise as the bearish market continues to depress prices.

The declined performance of the bourse has even defied the inflow of foreign investors with prices across the counter unable to pick up any sustainable momentum.

“The stock market is currently being driven by foreign investors who are buying relatively cheap stocks in readiness for the expected pick,” said Mr Peter Mwangi, the NSE chief executive officer.

According to an investment note by Sterling Investment Bank, foreign investors increasingly constitute the majority of trading.

“Foreign trades made up about 67 per cent of the total turnover in the market, emphasising the dominant role that foreign investors continue to play at the Kenyan bourse,” says the market research note.

However, market watchers are optimistic that the market has hit a trough and the next movement is expected to be upward.

“It can’t get any worse than it is hence we expect the prices to start edging upward albeit at a slower pace,” said Aly Khan Satchu of Rich Management an Investment Advisory Agency.

A pointer to an expected upward movement of prices is seen from the immediate price surge of BOC Kenya and Carbacid Gases which were re-listed recently.

The re-listing follows BOC’s decision to call off its intended acquisition of Carbacid.

At the time of suspension in December 2005, BOC and Carbacid shares were trading at Sh160 and 137 respectively.

On their first day of trading BOC shares traded were stable at Sh161 while Carbacid shares rose to a high of Sh290 before easing off to Sh200.

With the financial segment having been the main driver of the bourse, the streaming of stable third quarter results is likely to firm up the market.