NSE is worst performing market globally, says Bloomberg
Investment brokers on the trading floor of the Nairobi Securities Exchange. PHOTO | FILE
The Nairobi Securities Exchange (NSE) is the worst performing market globally year-to-date, according to Bloomberg, with risk-averse investors shunning stocks for safe-haven government debt.
Chief executive of the NSE Geoffrey Odundo was quoted by Bloomberg saying demand has been limited by a continued wait-and-see attitude by investors amid persistent volatility.
“Because of issues around volatility in the markets, most pension schemes over the past two years have lost value in their equity holdings so they want to play a bit safer.
‘‘Interest rates have historically given them a better performance so that is why they are willing to buy government paper,” Mr Odundo was quoted by the news service as saying.
He was, however, optimistic that things would change even as the country gets into a traditionally market-depressing electoral mode.
“We see it bottoming at some point. Foreigners are waiting for better prices and are picking stocks at fairly low prices and this has dragged the index downwards, especially given that when the stocks that really drive volume — which are telcos and the banking sector—fall, they drag the index down.”
Some nine stocks at the NSE are trading at multi-year lows in the current bear market.
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