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Foreign investors have dominated stock market activity in recent weeks as local traders fear falling stock prices.
The Nairobi Securities Exchange (NSE) data compiled by Standard Investment Bank (SIB) shows that foreign traders accounted for at least 65% of weekly business turnover since the beginning of June, peaking at 74% during the week ending June 29th.
However, their activity has been seen with net sales of 3.8 billion shillings in the six weeks since the beginning of June – they also had a net selling position in the last 16 consecutive trading days stock Exchange.
say that their operations have been concentrated on large-cap meters that have traditionally offered sufficient liquidity to support their large volume transactions. "The index counters, mainly Safaricom, KCB, Equity and EABL remain the most traded counters for" Foreign investors also benefit from a stronger shilling, which gives them a foreign exchange gain when they go out their portfolios, making them earn more dollars per shilling. do their conversion before leaving the market.
This year, the local currency is appreciated by 2.4 percent against the dollar, trading at 100.80 against the greenback.
This large-cap sales activity continues to have a negative effect on the NSE 20 benchmark, which has lost 14% since the beginning of the second quarter of the year
