By Kepha Muiruri For Citizen Digital
An analysis of data from the bourse shows the value of stocks fell to Ksh.1.939 trillion at the end of June from Ksh.2.593 trillion on December 31.
The decline in market value is attributable to sharp stock prices decline, enforced by heavy investor sell-offs in the face of new volatility.
The emergence of the Russia-Ukraine war combined with uncertainties over the upcoming August 9 General Elections have combined to drive down investor sentiments.
During the six months for instance, foreign investors dumped stocks worth Ksh.12.6 billion in a flight from risk as they opted into safer haven assets.
Rate hiking cycles in developed economies to combat rising inflation has for instance seen foreign investors who are responsible for the bulk of trading at the NSE reverse capital flows to home markets.
The heavy investor sell-offs has left the NSE in bear territory with the Nairobi All Share Index (NASI) declining by 25.2 per cent in the year to date to 124.47 points.
The NSE 20 share index is meanwhile 15.2 per cent down this year at 1612.89 points from 1902.57 points previously.
The market tumble has left heavily discounted stocks representing potential entry points for new investors.
For instance, the NSE’s top five high trading counters in the first three months to March have all recorded notable declines.
Safaricom’s stock price has for instance fallen by 34.3 per cent in the year to date to Ksh.24.95 from Ksh.37.95.
KCB is meanwhile down 15 per cent for the year at Ksh.38.65 from Ksh.45.45.
Equity share price has meanwhile declined by 14.9 per cent to Ksh.43, EABL by 16.8 per cent to Ksh.137.25 and Standard Chartered by 2.7 per cent to Ksh.124.75.
The NSE has tipped the market to turn the corner on certainty from the upcoming General Elections next month including the reversal of capital from foreign investors.
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