Nairobi Securities Exchange bounces back after election

Nairobi securities Exchange (NSE)trading floor.17/10/14-BEVERLYNE MUSIKLI

Kenyan shares inched higher on Friday after the presidential election rerun left some investors satisfied that the country’s political institutions were continuing to function for now.

The benchmark NSE 20-index jumped 1.27 per cent and the broader all share index rose by 1.11 per cent. In the foreign exchange market, the shilling edged up to trade at 103.65/75 per dollar in the last hour of trading, after opening at 103.85/95, its lowest level since mid-August.

Kenyan assets have been pummeled since the beginning of September when the Supreme Court nullified the initial August 8 presidential vote over procedural irregularities and ordered a re-run.

The pressure increased after opposition leader Raila Odinga withdrew from the re-run and demanded a fresh 90-day electoral cycle, complete with fresh nominations.

“We were expecting a bump once the election took place irrespective of whoever wins,” said Raymond Kipchumba, a research analyst at Nairobi-based ABC Capital. “As long as there was a form of an election taking place and either a government almost ready in place to take over or continue, we were expecting foreigners to come back.

” The political crisis had also cut trading volumes at the bourse with weekly traded volumes of large cap stocks like telecoms operator Safaricom halving to 30 million shares, Kipchumba said.

Traders attributed the shilling’s drop earlier in the week to nervous foreign investors exiting shilling assets.