Money Markets
Foreign investors alter stockbrokers’ fortunes
Stockbrokers at the NSE. Trading data from the Nairobi Stock Exchange for up to December 2009 shows that as foreign investor activity surpassed local participation to hit 61 per cent of total turnover last year. File
Posted Tuesday, January 26 2010 at 19:51
The collapse of three stockbrokers in quick succession is widely believed to have been the single biggest factor that scared away a majority of the estimated 1.8 million predominantly retail investors from the NSE.
“The rise in Safaricom’s share price above its IPO price has also generated a lot of positive sentiment and demonstrated that investors can make gains if they take a long term view of the market,” says Mr Karina.
Afrika Investment Bank managing director Peterson Mwangi says most local investors were un-sophisticated, first time punters who had never rode the cyclical tumbles of stock markets but are now likely to troop back to the market drawn by the rising share prices.
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