Foreign investors are now net buyers at the Nairobi Securities Exchange (NSE) as calm returns following conclusion of the presidential polls.
Data compiled by Standard investment Bank (SIB) shows that foreign investors have been rushing back to the bourse to buy stocks they considered undervalued after the political cloud lifted. Market turnover last week rose to Sh2.8 billion from Sh2.4 billion last week as a result. Turnover topped Sh2.56 trillion from Sh2.46 trillion.
The SIB market report showed a jump in foreign investor participation at the bourse, rising from 30 per cent to 80 per cent in the last sessions of the week.
“Foreign investors maintained their net buying position for the ninth session in a row… their participation rose to 75.8 per cent - highest in two weeks,” SIB said in a market note midweek.
Kenyan markets have rallied since the conclusion of the rerun election, with analysts expecting the economy to pick up into the New Year as calm returned to the markets and the new government gets to work.
Some of the top counters that has seen renewed activity from foreign investors include telecom giant Safaricom #ticker:SCOM – a darling of foreign investors due to its high liquidity – and banking stocks.