Nairobi Securities Exchange main Index falls to lowest point since 2009

The shilling is also down this year, weakening 1.37 per cent so far against the dollar according to Reuters data, mainly due to seasonal dollar demand from importers and a firmer US currency globally.PHOTO: COURTESY

Kenya’s benchmark NSE-20 share index fell to its lowest point since October 2009 on Friday, slipping below the 3,000 level after several months of losses.

The shilling is also down this year, weakening 1.37 per cent so far against the dollar according to Reuters data, mainly due to seasonal dollar demand from importers and a firmer US currency globally.

The NSE-20 closed down 1.43 per cent on the day to close at 2971.10 points, led lower by bank shares. It was its first fall below 3,000 since October 2009.

Aly Khan Satchu, an independent trader and analyst, said the bourse has seen broad-based selling pressure since the beginning of the year as a spillover from the bear market in 2016.

“Banks have been badly hit as investors look forward into 2017,” he said, referring to a cap on commercial lending rates, imposed by the government last September.

He said the sell-off was overdone but it would take a while for prices to settle. “Catching a bear market can be like catching a falling
knife,” he said.

In the foreign exchange market, the shilling closed at 103.95/104.05 per dollar, barely moved from Thursday’s close of
103.90/104.00.

—Reuters