Markets Gain On The Upholding Presidential Election Results

 

By Kepha Muiruri

The capital markets have gained off the Supreme Court’s decision upholding the outcome of the August 9 General Elections on Monday.

The gains seen are largely tied to the end of uncertainty arising from the protracted electioneering period which saw a petition challenging the elections outcome on August 22.

At the Nairobi Securities Exchange (NSE) investor wealth increased by Ksh.43 billion to Ksh.2.193 trillion as Equity turnover improved by 70 per cent to Ksh.448.1 million from Ksh.287.1 million on Friday.

The number of shares traded in Monday’s trading session stood at 19.98 million as the number of equity deals closed in the session rose to 1,158 from 912 previously.

All three NSE indexes closed higher in the session with the NSE-25 Share Index gaining the most by 38.39 points.

Further afield, yields on Kenyan Eurobonds fell in the aftermath of the Supreme Court’s decision with yields on the maturing 2024-10 year issue for instance falling below 14 per cent.

Yields on Eurobonds maturing in 2027, 2028, 2032 and 2048 also fell below 13 per cent on Monday.

The Kenya Shilling nevertheless remained largely unchanged in the session to change hands with the US dollar at Ksh.120.25 marking a marginal depreciation of 0.06 per cent for the day.

The market reaction is the polar opposite to the 2017 nullification of the Presidential Elections result which saw trading halted at the NSE following sharp investor selloffs.