Browsing: Nairobi Stock Exchange (NSE)

Stock market defies disputes over presidential poll results

Trading took place on Monday before Deputy President William Ruto was confirmed the winner of the presidential election, which occurred amidst scenes of chaos and the rejection of the results by four election agency commissioners.

As a result of Odinga’s pledge to legally contest the election results, it is possible that it could be several weeks before a new president is inaugurated into office. This has sparked worries of unrest against the backdrop of rapidly increasing food prices and massive levels of public debt.

Analysts had predicted that there would be a sell-off of shares, which was anticipated to drag the NSE down to new lows.

The total value of all equities was estimated to be Sh1.847 trillion as of the end of the year, which is a decrease of Sh2.636 trillion from the beginning of the year. Meanwhile, the NSE main index reached a low point not seen in 19 years due to the departure of foreign investors.

At the end of the trading day, the NSE-20 Share Index reached 1,580 points, a high not seen since 2003.

The share price of Safaricom, which makes up more than half of the value of the stock market, has dropped by 38 per cent since January to a current price of Sh24 per share, down from a price of Sh37.95 per share in January, which has contributed to the fall at the Nairobi bourse.

Due to the stock’s high liquidity and strong business performance, such as profits and dividends, foreigners have exposure to it.