NAIROBI (Xinhua) --
Investors’ wealth at the Nairobi Securities Exchange (NSE)
declined by 941 million U.S. dollars in May, hit by drop in
prices of large capitalization stocks as foreigners’ exited
market, analysts said on Tuesday.
Nairobi-based investment firm, said in a brief that market
capitalization, which measures shareholders’ wealth, ended the
month at 24 billion dollars after shedding the millions of
Some of the large stocks that declined during the month were
Diamond Trust Bank, Barclays Bank, Cooperative Bank and Kenya
Commercial Bank, which fell 11.2 percent, 10.9 percent, 8.4
percent and 8 percent, respectively, with the fall attributed to
the bank’s closing their books for dividend payment.
The decline in investors’ wealth happened even as turnover
during the month increased by 22 percent to 183 million dollars
from 150 million dollars in April.
"Foreign investors remained net sellers this month as they
sought to realize the capital gains on various counters, in
addition to receiving dividend income.
Most investors exited the market at the relatively healthy
valuation, with possible re-entry at cheaper valuations in the
future," Cytonn said.
All the markets’ indices, similarly, maintained a downward
trend, with the Nairobi All Share Index, NSE 20 and NSE 25
declining by 3.9 percent, 10.8 percent and 3.7 percent,
"We expect the market to remain supported by improved
investor sentiment as the economy recovers from shocks
experienced last year," said Cytonn.
On Monday, the NSE 20 Share Index dropped by 60.14 points to
stand at 3,273.22 points.
Kenyan shilling surges
against the dollar
NAIROBI (Xinhua) --
The Kenyan shilling appreciated considerably
against the U.S. dollar on Tuesday to cross to the 100 level
boosted by growth of inflows.
The local unit rose to trade at between 100.80 and 100.90 on
Tuesday, up from 101.40 in the Monday trading session.
The Central Bank of Kenya placed the shilling at 100.91 to
the dollar, a significant surge from 101.39 in the Monday
Commercial banks in the East African nation, on the other
hand, quoted the shilling at an even higher position of between
100.60 and 100.80 from 101.30 and 101.50.
Currency traders attributed the surge of the shilling to
offshore investors at the debt market and some commercial banks
disposing their dollars.
Against the British pound, the shilling declined marginally
to close the day 134.86 from 134.87 from the previous session.
According to Cytonn, a Nairobi-based investment firm, the
shilling is expected to strengthen against the dollar boosted by
horticulture, offshore investors and diaspora inflows.