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NSE trading rises to 23 month high after polls

Stockbrokers on the floor of the Nairobi Securities Exchange. FILE PHOTO | NMG
Stockbrokers on the floor of the Nairobi Securities Exchange. FILE PHOTO | NMG  

The Nairobi Securities Exchange (NSE) extended its post-election surge on Tuesday, closing at a near 23-month high and signalling the gathering of a recovery momentum from a two-year slump.

The indicative NSE-20 Share Index, which tracks the performance of 20 most valued firms on the Nairobi bourse, gained a 0.91 percentage point Tuesday to close at 4,114.01 points.

The NSE-20 index has gained 7.75 percentage points since last Monday – the day before Kenya went to polls where President Uhuru Kenyatta was declared winner over opposition chief Raila Odinga.

The index is now 29.12 per cent higher year-to-date, signalling investor satisfaction with the vote outcome that Mr Odinga has insisted was rigged in favour of the incumbent.

The value of shares traded Tuesday edged up by Sh39.97 million, or 4.98 per cent to Sh842.53 million, according to NSE data.

The daily turnover was, however, 40.24 per cent shy of the Sh1.41 billion posted on Friday before Independent Electoral and Boundaries Commission (IEBC) chairman Wafula Chebukati announced presidential poll results.

Mr Odinga, who has defied growing international pressure to accept the result or challenge it in courts after post-election violence left more than 24 people dead, yesterday postponed the coalition’s “major announcement,” citing ongoing internal negotiations.

Analysts have, however, said the poll dispute was not likely to disrupt stock market activity .

“We are seeing a lot of foreign play particularly on banks and that’s the biggest contributor in terms of turnover,” NIC Securities general manager Catherine Karita said.

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