This archive report was first published on 14 August 2019.
The Nairobi Securities Exchange (NSE) has been struggling to stay afloat, with its market performance slumping for the third consecutive week.
According to the latest market report, foreign investors have been largely behind the market's downturn, with net outflows of $290,000 (approximately Ksh29.8 million) recorded during the week.
Foreign investors have been on the sell side in the past two months, taking out Ksh2.05 billion ($20 million) worth of net sales last month and Ksh903 million ($9 million) in June.
Despite this, investor wealth as measured by market capitalisation has increased by Ksh19.6 billion ($190 million) to Ksh2.27 trillion ($22 billion) at the close of trading, thanks to gains on the Safaricom and Co-operative Bank stocks.
However, over a one-year period, investor wealth at the bourse has eroded by Ksh253 billion ($2.5 billion), having stood at Ksh2.523 trillion ($25 billion) as at early August 2018.
Analysts at investment bank Genghis Capital predict that banking stocks will be at the forefront of determining the market's direction as they release their half-year to June results in the coming weeks.
