Stock market falls 51 billion shillings in three weeks

Capital markets

Stock market falls 51 billion shillings in three weeks


Nairobi Stock Exchange trading room. FILE PHOTO | NMG

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Summary

  • Investors at the Nairobi Securities Exchange (NSE) have seen their paper wealth shrink by 51 billion shillings since the start of this month as foreign investors continue to flee the market.
  • Russia’s invasion of Ukraine, profit taking and the upcoming general elections in Kenya are among the factors contributing to the market selloff.
  • The large companies that dominate the NSE in terms of market capitalizations are among the counters that saw significant declines in their share prices during the review period.

Investors on the Nairobi Stock Exchange (NSE) #ticker:NSE have seen their paper wealth decline by 51 billion shillings since the start of this month as foreign investors continue to flee the market.

Market capitalization opened at 2.43 trillion shillings in April and had fallen to 2.37 trillion shillings on Tuesday.

Russia’s invasion of Ukraine, profit taking and the upcoming general elections in Kenya are among the factors contributing to the market selloff.

The large companies that dominate the NSE in terms of market capitalizations are among the counters that saw significant declines in their share prices during the review period.

Some saw their stock prices fall before the dividend books closed, underscoring the rush of some investors to exit the market.

KCB Group #ticker: KCB lost the most value, with its market capitalization decreasing from 14.1 billion shillings to 127.4 billion shillings. Its share price fell 6.7% on Tuesday alone to close at 39.65 shillings.

The drop came after the bank closed its books on Monday for the Sh3 dividend per share for the year ended December.

Safaricom #ticker: SCOM has lost 12 billion shillings since the beginning of the month, falling to 1,350 billion shillings.

Equity Group’s #ticker:EQTY market capitalization fell from 3.96 billion shillings to 186.6 billion shillings. The lender will close its books for the Sh3 per split share on May 20.

East African Breweries Plc #ticker: EABL saw its market value drop from 3.95 billion shillings to 114.6 billion shillings.

Co-op Bank’s #ticker:COOP market capitalization decreased by 1.1 billion shillings to 74.2 billion shillings. The lender closes its register for the Sh1 dividend per share on May 20.

Foreign investors sold their shares in blue chip companies to reduce their exposure to frontier and emerging markets following the Russian-Ukrainian war.

The conflict began in February, disrupting global supply chains, capital flows and driving up the prices of raw materials, including petroleum products.

“With the increase in global economic shocks, the market has suffered a loss in its participation levels from foreign investors in recent months, with March 2022 registering the lowest level of 47.89%,” said the Market Authority. capital in a market review for the first quarter ended in March.

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