Corona virus Causes Investor Flight Resulting to the Wobbling of NSE

As effects of the Corona virus takes its toll on financial markets around the world, the Nairobi bourse has been on a slide for the past three weeks running.

The benchmark NSE 20 Share Index shed off 161.91 points (6.48%) and closed the week at a ten year low of 2337.03, this as per data from the exchange shows that.

The Nairobi All Share Index (NASI) settled at 148.60 after ending the week at 9.78 points lower or 6.18%.

Massive sell-offs in Safaricom and banking shares were witnessed by the NSE which is largely driven by activity by foreign investors this, according to data as of today’s market close.

A senior Research Associate at Standard Investment Bank (SIB), Martin Kirimi noted, “Foreign investors on average account for 70% of total turnover; thus, if they are in risk aversion mode, the bearish effect is felt across the bourse. Essentially, the sell-off is not unique to Kenya alone, as evidenced by the global downturn in stock prices,”

Nderi Johnson, an analyst at ABC Bank noted, “The NSE 20 Share index hit a 10-year low and the recent repeal of the rate cap law has not been sufficient to jump-start this market,”