Money Markets
Failure to hedge hurts Kenyan shareholders
The shilling. Hedging against foreign currency exposure is increasingly becoming important because of volatile exchange rates. Photo/FILE
By John Gachiri
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Posted Tuesday, August 24 2010 at 00:00
Posted Tuesday, August 24 2010 at 00:00
Earning also affect the price-to earnings ratio which measures the value of stock price, lower earning means share prices should go down.
AccessKenya management said it was investigating various hedging instruments to ensure that there is no recurrence of the forex loss.
More firms are dedicating departments to deal with forex trading as they try to reduce their foreign risk exposure.
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