NSE tumbles on petition ruling as shilling remains firm

(Photo: Courtesy)

The capital market continued on a downward spiral with firms shedding Sh37 billion in Monday’s trading, an indicator that investors are yet to absorb the shock of last week’s Supreme Court ruling.

The Nairobi Securities Exchange (NSE) 20-Share Index shed 80.47 points to settle at 3,806.80 points as the All Share Index (NASI) dropped 2.58 points to stand at 160.33 while the NSE 25 Share Index was down 78.33 points to stand at 4249.74.

“Only two representatives, Stanbic and DTB are showing green,” said Sterling Capital of the trend.

The shilling, however, absorbed the Friday’s shock and slightly strengthened against the dollar.

Reuters reported that banks posted the shilling at 103.15/35 per dollar, barely changed from Friday’s close of 103.20/30.

The news wire said currency market traders were confident the local currency could start to regain ground as investors gradually come to terms with the ruling.

For a second trading day, foreign investors were the biggest sellers at the bourse, making up 74 per cent of net sales, with Safaricom and Bamburi Cement registering block sales - orders or trade submitted for the sale or purchase of a large quantity of securities.

Telecommunication giant Safaricom moved 53.94 million shares at an average of Sh24 for a value of Sh1.30 billion, accounting for 83.78 per cent of the day’s volumes.

The banking sector lost Sh2 billion in paper wealth, with Equity Holdings, KCB Group and Cooperative Bank shares dropping by 5.63 per cent, 5.14 per cent and 4.19 per cent respectively.

Barclays Bank, British American Tobacco, CIC Insurance and Kenya Airways shares remained flat.