Loss in market cap, mainly by Safaricom, brought the total NSE loss to Sh747bn compared to the April peak of Sh2.896trn and last Friday’s Sh2.149trn.
The market decline kicked off when Kenya’s relations with the IMF got into limbo following failure to complete two reviews of the programme that ended on September 14.
Investors at the Nairobi Securities Exchange lost Sh179 billion last week as the impact of foreign investor outflows hit frontier and emerging markets at a time of uncertainty around new tax measures.
Loss in market cap, mainly by Safaricom #ticker:SCOM, brought the total NSE loss to Sh747bn compared to the April peak of Sh2.896trn and last Friday’s Sh2.149trn. The market decline kicked off when Kenya’s relations with the International Monetary Fund (IMF) got into limbo following failure to complete two reviews of the programme that ended on September 14.
Analysts say foreign investors are jittery about the fiscal policy issues as well as the performance of the banking industry after MPs rejected attempts to remove the restrictions imposed on movement of lending rates.
“The equity market in Kenya is suffering from exits by foreign investors. These exits are happening across emerging and frontier markets and the NSE is among those affected,” said Edwin Chui, research analyst with Dyer and Blair Investment Bank.
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