Capital Markets

Bear market pulls NSE 20 share index to eight-year low

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

The Nairobi Securities Exchange (NSE) 20-share index Wednesday fell to a eight-year low of 3,047 points, saddled by a dip in blue chip counters that are the main drivers of activity at the bourse.

The index’s fall to the level last seen on October 28, 2009 left investors Sh110 billion worse off in just a week and a half of trading this year.

The market cap (the value of all shares listed at the exchange) stood at Sh1.82 trillion Wednesday compared to Sh1.93 trillion at the beginning of the year, extending the pain for investors who had to contend with a Sh120 billion erosion of their wealth last year.

On Wednesday, the bourse shed 36 points or 1.2 per cent of market capitalisation after only five counters recorded share price gains out of the 63 that actively trade at the exchange.