A Nairobi Securities Exchange staff monitors trading. FILE PHOTO | NMG
Turnover halved to Sh237 million at the Nairobi Securities
Exchange (NSE) on Thursday as investors traded with caution amid
heightened political noise in the country.
Investors
moved just 11.5 million shares compared to 27.2 million traded on
Wednesday, while the NSE 20 share index closed in the red for the
seventh straight session.
The last two weeks have seen
lower trading among investors with trades averaging Sh422.4 million, in
contrast to the first half of the month when they traded an average of
Sh1.08 billion per day.
“Market turnover was depressed
as has been the trend over the past few trading sessions, we expect this
to continue with the current uncertainty in the market due to the
rising political temperatures,” said Genghis Capital in a market brief.
On
the indices, the NSE 20 share index has slipped to 3716 points from
4027 at the end of August, while the market capitalisation has fallen by
Sh85 billion to Sh2.39 trillion since the end of August.
Although
the decline in trading activity is not as pronounced as was the case in
early August when the General Election was held, analysts say that the
political uncertainty is causing investors to adopt a wait and see
attitude before committing to buy and sell in the market.
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