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September 25, 2018

NSE drops for the third day in a row over political uncertainties

An Investors looks at the Daily tradings at the Nairobi security exchange in Nairobi on June 30,2017. PHOTO/ENOS TECHE.
An Investors looks at the Daily tradings at the Nairobi security exchange in Nairobi on June 30,2017. PHOTO/ENOS TECHE.

The Nairobi Securities Exchange dropped for the third day in a week with all indices closing in the negative as political tension in the country heightens.

Opposition leader Raila Odinga on Monday officially backed out of the upcoming presidential elections in October 26, 2017 saying the electoral body has not met the standards required for a free and fair election.

This move heightened uncertainty and is bound to be reflected in the markets. The bourse transacted 8.06 million shares from 1178 trades compared to 8.4 million shares traded the previous day.

The day’s turnover fell below Sh200 million for the first time in the week. On Tuesday, NSE reached a turnover of Sh212.99 million versus the previous session’s Sh490 million.

The Nairobi All Share Index was down 1.98 points to close at 159.09, points on yesterday’s session.

The NSE 25 Share Index was also down by 47.31 points to close at 4148.57 points while the NSE 20 shed 52.85 points to close at 3659.52

Only stocks for 15 firms gained while 29 stagnated with the remaining 24 trading in the negative.

Consequently, Kenya’s dollar-denominated 2024 sovereign bond fell as much as 1.2 cents yesterday, according to Reuters.

The fall in the bond price is the biggest daily decline since the Supreme Court ruling on September 1.

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