The Nairobi Securities Exchange (NSE) on Wednesday extended its downward trend with the indicative NSE 20 share index at below 3,500 points for the second day running.
The exchange was down 18.65 points to close at 3475.38 Wednesday, having first fallen below 3,500 points on Tuesday.
The energy and petroleum sector had the biggest share of trading, moving 30.4 million shares, which accounted for 61.55 per cent of the day’s traded volume followed by the banking sector with 12.6 million shares or 25.63 per cent.
“KenolKobil was the day’s biggest mover with 26.4 million shares exchanging hands at between Sh10.40 and Sh10.70. KenGen closed 10 cents lower to Sh6.50 on a volume of 3.8 million shares,” the NSE report said.
The NSE is yet to recover from the bear run that hit it last year, losing up to 31.9 per cent of its value since the February 2015 peak.
Investments firm Cytonn was, however, upbeat about performance this year with eyes on long-term investors expected to take advantage of record low share prices.
“We maintain our expectation of stronger earnings growth in 2016 compared to 2015, with an estimated growth of 12.5 per cent, supported by a favourable macroeconomic environment. Given the low valuations, long-term investors should gradually be taking positions in the market,” Cytonn said in its weekly report.
Wednesday’s turnover rose to Sh773 million from the previous session’s Sh597 million.